community-owned renewable energy

A HOW TO GUIDE contents

A short guide to starting a community renewable energy project 3

1. About this guide 7

2. Community renewable energy in context 8

3. Starting your CORE project 21

4. Vision and Values 24

5. Organisational structures and governance 28

6. Community engagement and communications 35

7. Technical considerations 37

8. Finance and fundraising 41

9. External factorst 49

10. A final word 52

11. Resources 53

The Guide is not a legal document and does not replace legal advice. Every effort has been made to ensure accuracy in this document. However, the items are necessarily generalised and readers are urged to seek specific legal advice on particular matters and not rely solely on this text. Statements in the Guide do not necessarily reflect the opinions of the NSW Government. 1 foreword

Community owned renewable energy is a fantastic opportunity for all of us to participate in developing clean energy.

Not only is community owned renewable energy a great way for us to improve our environment, but it is also an opportunity for regional communities to come together and benefit economically. A more diverse energy mix developed through local community enthusiasm will benefit us all.

Whether you are taking the first steps on developing a new project or whether you are thinking about participating in an existing project in your community it is essential that you have the right decision-making tools. This guide has been developed to help local communities make these decisions.

The NSW Government is proud to support community owned renewable energy.

Rob Stokes, MP Minister for the Environment, NSW Government

2 a short guide to starting a community renewable energy project

Jarra Hicks, Nicky Ison, Jack Gilding & Franziska Mey – April 2014.

Communities across Australia are coming together to make the most of their clean energy potential by establishing solar, wind, bioenergy and hydro-power projects that involve and benefit local people. This is a short guide to starting such a project in your own community. This guide has been prepared with the financial support of the NSW Government, through the NSW Office of Environment and Heritage’s Regional Clean Energy Program.

WHAT is community renewable energy? HOW to get started Community-owned renewable energy projects The early stages of a successful community- are those that help decarbonise, decentralise owned renewable energy project depends on a and democratise our electricity system and small group who are able to commit volunteering demonstrate that renewable energy technologies their time over a sustained period. It might be an work. They develop local renewable energy offshoot of an existing organisation, or it might be resources for electricity, heat and fuel in ways that: a new group. Ideally this core group will have skills in community engagement, an interest in technical reflect the motivations and aspirations of the  detail and some expertise in project management. local community; Financial, legal and fund-raising skills are also  maximise local ownership and decision making; important but these can come in a bit later.  share the financial benefits widely;  match energy production to local usage. Engage your community One of the strengths of community renewable Why? People form the foundation of a community- owned renewable energy project and community energy is that every project is slightly different, support is critical to success. Getting people on being tailored to each community’s needs and board with the project vision will build your base of context. champions in the community and, ultimately, these WHY is community renewable energy people will become your investor base. important? What? Gauge the level of support, identify and recruit active members, identify partner Community-owned renewable energy projects organisations, educate the public about renewable create social, political, environmental, economic energy options, build a database of supporters. and technological benefits by: How? Website, newsletters, street stalls, articles in  strengthening local economies; the local paper, guest speakers, public meetings, building community participation, resilience  site visits to other community renewables projects, & empowerment; brainstorming workshops, events, celebrations,  educating people about renewable energy and drop-in information sessions, etc. involving them in creating a sustainable low- carbon future;  directly and significantly reducing a community’s carbon footprint;  developing renewable energy industries, technology, jobs and training.

3 Define your vision Use your community engagement process to create a shared vision for your local project:  Why are you doing it? What social, environmental and economic benefits drive your project?  What is the ‘community’ you are reaching out to?  What technology will you use and what is the scale of the project?  How will the benefits be shared?

Choose a technology Westmill Solar Cooperative, UK. Some projects start with a particular technology Courtesy of www.westmillsolar.coop. or local energy resource as part of their vision. Others are driven by wider goals and undertake an investigation of possible technology options that suit local circumstances. After initial discussion and investigation, you will need to choose a technology, scale and site before you can develop the detail of your project. Typical technologies are wind, solar PV, small hydro and biomass. Each has distinctive implications for the scale, location, cost, timeline and complexity of your project. A pre-feasibility study can scope the practicality, likely cost and potential barriers to your chosen technology. Wildpoldsried, Germany. Developing the detail of your project Courtesy of Jarra Hicks. The combination of a community vision and a choice of a particular type and scale of technology will form the basis of a CORE project proposal. This is likely to include considerations of:  How will the project be developed: as a community organisation to which people donate? As a new legal entity (eg co-operative or company) in which the community invests? As a partnership with a planned commercial renewable energy development?  Who are the key partners you need for the project to succeed? These could include Hepburn Wind, Victoria, Australia. dedicated CORE support organisations, Courtesy of Karl von Moller.

4 funders, a community bank, an electricity retailer, your local council, a law firm, an engineering consultant, a commercial renewable energy developer etc.  What legal structure best suits your purpose and values?  Who will be involved in making what decisions?  How will the project be funded, constructed and operated?

Developing the business model All the decisions above feed into a business Westmill Solar Cooperative, UK. Courtesy of www.westmillsolar.coop. model. If you are intending to raise money from the public this will form a crucial part of your fundraising document. Even for smaller projects the business model needs to define:  What the project will cost, how much you need to raise, by what means and at what time.  How the energy generated and other products (such as Renewable Energy Certificates) will be used and sold, and what income will be received.  What return investors are likely to receive and what other financial and other benefits will be distributed to the local community. Hepburn Wind, Victoria, Australia.  How operating, maintenance and Courtesy of Jarra Hicks. decommissioning costs will be planned for.

Your business case needs to set out the assumptions behind your calculations and test that the project is viable in the longer term if circumstances change.

Wildpoldsried, Germany. Courtesy of Jarra Hicks.

5 Making it happen Top 3 resources recommended to help At some point you will know if your project is you get started: ready to become a reality. You may be about to  Embark launch a capital raising campaign, set up a new www.embark.com.au organisation or sign a contract with a key partner The Embark website provides a comprehensive organisation. Key issues you will need to focus on Australian specific overview of community now are: renewable energy, including practical capacity- ŽŽDo you need to employ someone to coordinate building tools. It also showcases different everything? examples of successful community energy projects  The dynamics of fundraising: Will you reward from around the world as well as having important early investment, how will you maintain Australian specific information. fundraising momentum, what will you do if you don’t reach the target?  PlanLoCal  How are you managing relationships with key www.planlocal.org.uk/pages/renewable-energy stakeholders? PlanLoCal have developed a great range of online  Who is providing the technical and project videos to help groups familiarise themselves management expertise to make sure the project with the process of establishing a CORE project is built to the required budget, timeline and and what it involves, as well as understanding quality? renewable technology options better.

Enjoy the journey  Community Energy Scotland If you are thinking of embarking on a CORE www.scotland.gov.uk/Resource/Doc/917/0115761.pdf project, you are part of a vital and rapidly growing This comprehensive toolkit has been produced movement in Australia. There are enormous by Community Energy Scotland for the Scottish opportunities for these projects and there are Government and Energy Saving Trust to help many organisations and individuals who can help community groups to develop renewable energy you. Developing your own project will take more projects as well as pursue energy efficiency time and effort than you expect, but the rewards activities. The guide is more technologically will be greater as well. Not every proposed oriented and also provides practical information project will become a reality but there will be many for community groups undertaking renewable and surprising benefits along the way. Enjoy the electricity or heating projects. journey, pace yourself for a marathon not a sprint, celebrate the milestones on the way, have fun and The full version of the Community Renewable remember: Energy How to Guide and links to many more resources can be found at: “Never doubt that a small group of www.cpagency.org.au/resources thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has!” - Margaret Mead

6 about this guide 1

This Guide to Community-owned Renewable Energy (CORE1) provides an overview of:

 What is community-owned renewable energy,  Why it’s a great opportunity, and  How to go about making it happen.

We also provide a status snapshot of CORE1 projects both internationally and in Australia. It has specific information on the situation in NSW but is relevant to groups throughout Australia. This Guide is intended as a first port of call to get an idea of how to start. Afterwards we hope you will have the confidence to go and talk to relevant organisations and read more of the many detailed resources available to help you on your journey to developing your own community renewable energy project. To help you on your way, we have provided a list of many of the relevant resources out there, as well as the organisations working to support CORE in Australia. When reading through this Guide try to remember one thing – you don’t need to know everything when you first embark on developing a CORE project. Every CORE project, ever, has learnt how to do it while doing it – you will find both the journey and the destination worth the effort. This Guide was developed by the Community Power Agency and Backroad Connections and funded by the NSW Office of Environment and Heritage. Hepburn Wind, Victoria, Australia. Courtesy of Jarra Hicks. 1 CORE, community energy, community power and community renewables are overlapping terms, and there has been much debate among stakehold- ers about which one to use. Coalition for Community Energy uses the term community energy as this refers to on both the community energy generation and energy savings projects. However, this guide has a narrower focus on community-owned renewable energy projects and as such the term CORE has been used.

7 community renewable energy 2 in context

2.1 A changing energy landscape business that fostered this budding sector, but A big energy transition in underway across the small groups of farmers and townsfolk. At this world. Every year the amount of renewable energy time, it was common for a few people from a installed grows significantly. As renewable energy village to form ‘wind guilds’ and collectively chip technologies like wind and solar PV develop, they in to build (from scratch!) or purchase and install a become cheaper and more efficient. As increasing wind turbine on the edge of town. fuel costs and the cost of pollution are factored in, This not only provided communities with access coal and gas-fired power become more and more to clean energy and an income generating asset, it expensive. In fact, wind power is now cheaper to also provided an early market and testing ground build in Australia than new coal or gas fired power for what is now a sophisticated global technology, 1 stations. crucial to our clean energy future. By 2001 there The way that people relate to energy is also were 150,000 families involved in over 2,100 wind changing. More and more, people are thinking co-operatives; together they owned 50% of all about where their electricity comes from, how turbines in Denmark and supplied 3.5% of national they use it, and what impact all of this has on our electricity needs.2 Similarly, 51% of all renewable planet and other people. People want to know energy capacity in Germany is owned by where their energy comes from and what the individuals and communities.3 That’s an amazing flow-on impacts are (for better or worse). People testament to the power of communities to lead are seeking ways to lessen the risks of increasing in (and benefit from!) the transition to renewable electricity prices and to keep the economic energy. benefits of energy production in local communities. Already in Australia the community has played a People are also looking for opportunities to crucial role in establishing the renewable energy take action on climate change in ways that are industry. Over 1 million households now have empowering, positive and significant. Many people solar panels on their roofs and are generating have done what they can at a household level and a portion of their energy needs directly.4 Every are looking for things they can do together, as a one of these households is now better informed community. One of the great things about CORE about renewable energy and energy use, and is that it enables people to collectively develop are potential advocates for renewable energy. renewable energy options that simply aren’t However, not everyone has a roof that they can available to you on your own. put a solar panel on, or once they have, many people want to do more. That’s where CORE Across the world, CORE is playing an important comes in. role in the transition to renewable energy. Take

Denmark for example. Modern wind technology 2 Danish Wind Turbine Owners Association (DWTOA) (2009) and the global wind industry emerged from Cooperatives: a local and democratic ownership of wind turbines, http://www.dkvind.dk/html/eng Denmark in the late 1970s and early 80s. 3 World Wind Energy Association (2012) Citizen Power Community Surprisingly, it wasn’t government funding or big Power Conference News, www.wwec2012.net/news/conference- news/telcos/ 1 Bloomberg Renewable Energy Finance (2013) Renewables now cheaper than coal and gas in Australia, http://reneweconomy. 4 Clean Energy Council, 2013, Million Solar Rooftops www. com.au/2013/renewables-now-cheaper-than-coal-and-gas-in- cleanenergycouncil.org.au/mediaevents/media-releases/April- australia-62268 2013/130405-Million-solar-rooftops

8 Box 1: The diversity of CORE Middelgrunden Wind Farm Jühnde Bioenergy Village A 20 MW offshore wind farm that is a joint venture Germany’s first co-operatively owned biomass between a co-operative of 8,500 members (mostly fuelled anaerobic digester and combined heat from Copenhagen) and the Copenhagen municipal and power plant – 700 kW (electric) and 700 kW utility. (thermal) and district heating network supplying 90% of Jühnde village’s heating needs. Hepburn Community Wind Farm A co-operative-run 4.2 MW wind farm in Australia Torrs Hydro that is majority owned by local residents and A 63 kW reverse Archimedes screw low drop contributes AU$30,000+ a year to a local hydro system (affectionately known as Archie) in Community Sustainability Fund. the English town of New Mills. Owned by a co- operative for the benefit of the community, with Ellensburg Community Solar majority membership from the local area. A 58 kW (and growing) solar installation organised and run by the municipal utility, a local university Min Wind I-IX and a local environment group in Washington Nine separate corporations running 1-2 turbine state, USA. Local residents are investors and wind farms, each owned by 33 different local receive reductions on their energy bills according farmer-investors in Minnesota, USA. to the productivity of the portion they own. Baywind Wind Co-operative Isle of Eigg A joint venture between a wind developer and a A standalone mini-grid powered by hydro, wind co-operative of Cumbrian and wider UK residents. and solar PV, providing electricity to the residents It has a community fund for local energy efficiency of the Isle of Eigg. Owned by Eigg Electric, a projects. subsidiary of the Eigg Development Trust, of which local people are members.

9 2.2 What is community owned governance and funding options. See Box 1 for an renewable energy? overview of this diversity. Even people’s motivations Community owned renewable energy (CORE) are for setting such a project up vary: some want to projects in which a community of people is involved reduce their town’s carbon footprint and take action in initiating, developing, operating and benefiting on climate change, some want local energy security, from a renewable energy development. CORE some want to support renewable energy education projects come in many shapes and sizes, growing and uptake, some want a means to boost their from the diverse needs and available resources regional economy. But there are some common of the local community. It might be anything from features that can be summarised in what we can solar PV on a community hall to a four-turbine wind call ‘the four D’s of CORE’.5

farm on the edge of town, to a small hydro system 5 3Ds by Ison, N. (2009) Overcoming technical knowledge barriers owned by two neighbouring villages. to community energy projects in Australia, unpublished Honors dissertation, University of New South Wales, Sydney and expanded CORE projects vary by technology, size, structure, to 4 by Rob Stokes, NSW Parliamentary Secretary for Renewable Energy in 2012.

Figure 1: A community energy project

$ Loan

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$ $ +

shares $ + $ $

10 Box 2: The 4D’s of Community-owned Renewable Energy CORE projects can be characterised by their contribution to:

Decarbonising our energy supply by using Democratising our energy governance through renewable energy or other low carbon-dioxide community ownership and participation. emitting technologies, such as biogas. Demonstrating the effectiveness of renewable Decentralising our energy supply by distributing energy and community ownership models. electricity production across the country to match local energy needs.

Even the word ‘community’ can mean many group’s idea of what is and isn’t included in a things. For example, a community might be ‘community’ approach is a bit different, this is part defined by geography, meaning all people of the diversity and flexibility that makes CORE living within a certain area. It can also refer to appealing to so many people in so many different a ‘community of interest’, in which people are circumstances.7 united by common goals and values, but might be geographically disparate. More broadly, 2.3 The CORE Sector: what’s out there? ‘community’ can refer to an enterprise that is International driven by independent individuals, rather than by Community ownership of renewable energy is business or government. most common and well-established in Europe, Generally, a ‘community’ renewable energy where such projects have been up and running project is founded on at least one of the following since the 1980s. Wind power is the most common elements: technology, but there are also many examples of other technologies being used: hydropower, ŽŽownership and decision making involves local anaerobic digestion with combined district heating individuals and stakeholders; and electricity generation, biomass boilers and ŽŽproject development and design is driven by solar PV. Countries such as Denmark, Germany local individuals and stakeholders; and the UK (particularly Scotland) are seen as ŽŽbenefits from the project go to local individuals “pioneers in renewable energy and in policy and stakeholders; approaches that encourage genuine opportunities ŽŽthe amount of energy produced matches local for democratic control, community engagement energy needs6. and economic participation”.8 In Germany, the The more of these elements that are incorporated 7 For more discussion on defining ‘community’ see Hicks, J. & Ison, into a CORE project, the more strongly embedded N. (2011) Community Renewable Energy Research Report for New England Wind, Community Power Agency. Accessible at: it will be in the community. However, every http://cpagency.org.au/resources 8 Gipe, P.(2004) 'Community Wind: the third way' in Wind Power: 6 Note this last element by itself is not sufficient to classify a renewable energy for home, farm and business, White River project as a community renewable energy or community-owned Junction: Chelsea Green Publishing. renewable energy project. Available at: www.wind-works.org

11 Hepburn Wind, Victoria, Australia. Courtesy of Ian Hutchinson. 12 first bioenergy village, Jühnde, started operating biogas plants using simple anaerobic digester its community owned anaerobic digester in 2008. technology.9 A further 2.5 million households in the By 2010 there were 100 similar schemes in developing world use solar PV lighting.10 operation and 150 more projects in development. Australia Experience in these countries indicates that a CORE is a new, but rapidly growing, sector in strong community renewable energy sector helps Australia. In 2009, there were only 3 known CORE drive the shift to renewable energy. projects under development. Now, in 2014, there are over 45 communities actively involved in setting up CORE projects and many more are interested. Hepburn Wind, Australia’s first community-owned wind farm, started producing electricity in mid- 2011. Denmark Community Wind Farm, in Western Australia, became operational in early 2013. Australia’s first community-owned solar project – ClearSky Solar also started operating in 2014. See the Community Wind (Box 4) and Community Solar (Box 5) boxes for more information. A recent survey of 37 CORE projects in operation or development across Australia found that most are in f NSW (15) and Victoria (11) and the majority Samso Island, a 100% renewable energy island in (20) are in regional areas.11 Most (27) are solar PV

Denmark. Courtesy of Jarra Hicks. projects, followed by wind (8) and small hydro (2) with the others yet to decided: some groups are Over the past 8 years we have seen CORE also considering bioenergy. Almost all are planning projects popping up in the US, Canada and to be connected to the existing electricity grid. Japan. Although the sector is quite new in these These projects are located in communities that countries, it is attracting a lot of interest and is collectively have a population of more than emerging quickly. 1 million, indicating the potential reach current There are also many CORE projects throughout CORE projects could have and the potential the developing world, particularly in regions of community-ownership base they could leverage Africa, South America, India and China. These and benefit. projects use solar photovoltaic, small hydropower, wind and modern biomass. They also incorporate 9 Renewable Energy Policy Network for the 21st Century (REN21) a range of simpler, smaller scale and inexpensive (2007) Renewables 2007: Global Status Report, p6. technologies, such as solar cooking, solar food 10 ibid driers and simple biogas (using unprocessed 11 National survey of community energy groups, undertaken as part agricultural and food waste and animal dung). of the National Community Energy Strategy led by the Institute for Sustainable Futures and funded by ARENA. See also Ison, N, Over 25 million households meet their cooking Hicks, J, Gilding, J, Ross, K. (2012) The Australian Community and lighting needs from household or village scale Renewable Energy Sector: Challenges and Opportunities, available at www.cpagency.org.au/resources

13 Figure 2: Map of CORE Projects in CORE in New South Wales development in NSW In NSW there is a significant amount of enthusiasm for CORE. ClearSky Solar’s Boggabri pub project12 was the first operational CORE project in the state, there are at least 15 other projects in development. Figure 2 shows the location of existing projects under development in NSW (three in Sydney). Examples include New England Wind, a community bioenergy project being investigated in the Blue Mountains, a community partnership with a large wind developer in Central West NSW and over 10 community solar projects in development from Lismore to Sydney, Nowra to Bathurst.

12 http://reneweconomy.com.au/2013/boggabri-pub-leads-the-way- in-community-solar-revolution-33313 www.cpagency.org.au

The NSW Regional Clean Energy Program

Box 3: NSW Government support for community renewable energy The NSW Government wants local communities to in early stage pre-feasibility and assessment be informed participants in discussing proposals activities for nine projects across NSW and is for local and community renewable energy the first of its kind in Australia. projects. To this end, the NSW Government is ŽŽTo help communities in other areas that also actively supporting CORE projects through the want to develop locally owned renewable Regional Clean Energy Program (RCEP)1, which energy, the NSW Government will build on the employs six Regional Clean Energy Coordinators. experience from these pre-feasibility studies These coordinators are supporting communities in to develop tools and standard contracts, with their engagement in large and small-scale projects project facilitation support from regional energy across a variety of renewable technologies, coordinators. including wind, solar, geothermal and bioenergy. ŽŽThe RCEP has supported the development The RCEP Program supports CORE projects in the of a number of useful resources, including following ways: research into community attitudes to wind, the challenges and opportunities facing CORE ŽŽRecently the RCEP released $411,000 in grant projects and a wind farm landholder’s guide, as funding for locally-owned renewable energy well as this Guide. projects. This short-term funding is assisting

1 The Renewable Energy Precincts program run by the NSW Office of Environment and Heritage has recently been reviewed and is now called the Regional Clean Energy Program.

14 2.4 The benefits In essence, the particular advantages of a Each group will have specific driving motivations community approach to renewable energy and values that will frame their choices and development lie in the potential to: outcomes. These will produce a range of benefits, ŽŽbuild community resilience and empowerment; not all of which will be important to or present in ŽŽbuild a strong understanding of renewable every CORE project. energy and a practical movement of action on Having visited or worked with over 40 CORE climate change; projects across four continents, we have seen a ŽŽsupport regional communities and foster local huge range of projects and their many possible economic development; benefits. These benefits can be categorised ŽŽhelp develop renewable energy industries, into five broad areas: political, economic, technology, jobs and training. environmental, social and technological, as CORE projects enable groups to act on many summarised in Figure 3. values and goals simultaneously: you can address your concerns about sustainability, while educating your community about renewable energy and generating new income streams for both investors and for community projects.

Figure 3: The Benefits and Motivations of Community Renewable Energy Projects

POLITICAL + Create actors in a ENVIRONMENTAL renewable powered future + Build power and action + GHG emissions reduction

+ Win hearts + Increase in environmental and minds values and behaviour + Local ownership and decision making + Regional development + Community building and income diversi cation SOCIAL and empowerment + Community asset + Local jobs + Renewable Energy Education and training + Shareholder income + Renewable Energy + Community income industry development + Energy self-suciency ECONOMIC TECHNOLOGICAL

The bene ts of community renewable energy projects From the “Home Energy Handbook”, 2012 15 The challenges specifically: While there is huge potential for community ŽŽreducing the financial administration costs to a renewables in Australia, there are also a range of point that ensures the business case stacks up; challenges that make it hard for projects to get and up and running. CORE is still a very new sector in ŽŽfinding suitable host-sites, with a large enough Australia and, like most new sectors, the path is on-site electricity demand and a significantly not yet ‘well trodden’: business and governance high electricity tariff so that the business case models are still being tested and the best means stacks up. of fundraising, connecting to the grid and selling electricity are still being explored. You can play a However, we believe that none of these challenges role in helping smooth the path for future projects! are insurmountable. Indeed, projects and CORE support organisations are working to overcome CORE projects take a long time, they require them in innovative and productive ways. With the sustained passion and dedication and they cost right support, the Australian CORE sector could a lot of money. It is also possible that there will be follow in the footsteps of successes of Europe. opposition to the project within your community. In Scotland, the right combination of community You will have to negotiate with the institutions interest, supporting organisations and good policy and regulations of the mainstream electricity and have seen the number of community renewables planning systems in Australia, neither of which projects grow from one or two to over 300 in less are well designed for small community orientated than a decade. renewable energy projects. The changing policy environment has flow on impacts for community It is important to remember that communities have energy projects. However, just because it’s an important role to play in a renewable energy challenging doesn’t mean it’s not worth doing. future. We’ve visited over 40 community renewable energy projects across four continents that are A recent national survey of 28 Australian CORE making real differences in communities, and there projects and 9 supporting organisations, identified are hundreds if not thousands more out there. three major challenges: ŽŽfinancing the development phase of CORE projects from vision through to being ‘investment ready’ (typically this means having planning approval and a detailed business case); ŽŽgetting a fair price for the electricity produced; and ŽŽthe feasibility and cost of grid connection.13 The National Community Energy Strategy currently under development has identified an additional two major challenges facing community solar projects

13 Ison, N et al (2012). As above.

16 Box 4: Community Wind

Hepburn Wind Community Fund distributes $15,000 per turbine Location: Leonards Hill, near Daylesford, Victoria. per year in grants for important sustainability projects in the community (indexed over 25 years Description: Hepburn Community Wind Farm delivering over $1m back to the community over co-operative is Australia›s first community owned the coming 25 years). Those in the immediate renewable energy project. The community initiated neighbourhood (roughly 2.5km radius) of the wind the project in 2005 and it began generating farm are eligible for: electricity in mid-2011. Specifications: 2 wind turbines with a combined ŽŽa free gift of shares; in this way, they can capacity of 4.2 MW. participate in formal decision-making processes and be connected to the project Total cost: $13.5 million: ŽŽcontributions to energy affordability for each ŽŽ$9.8m contributed by nearly 2000 community household investors ŽŽprioritisation in the Community Fund. ŽŽ$1.7m in grants (Sustainability Victoria & This is the first time in Australia a wind farm Regional Development Victoria) has given more to the community than to the ŽŽ$3.1m loan from Bendigo Bank (not fully landowner(s) who hosts the project. drawn). Impact: Hepburn Wind generates more electricity For a more detailed case study of Hepburn Wind annually than is used in 2000 homes — more than see www.embark.com.au or www.hepburnwind. the domestic consumption of the nearby town com.au of Daylesford and much of the surrounding area. Figure 4: Wind power potential, courtesy of Mount Hepburn Wind reduces greenhouse gas emissions Alexander Community Wind (2013). by 11,000 tonnes CO2e per year. More than half the project costs were for goods and services Denmark Community Windfarm provided by local or Australian suppliers. Hepburn Denmark Community Windfarm Ltd, Australia’s Wind provides several on-going jobs. second community wind farm, is a 1.6 MW project in Denmark, Western Australia. It has a Community ownership model: Hepburn Wind is very different model to Hepburn Wind. This $5.8m a co-operative owned by its member investors, the project received $2.49m in grant funding and the majority of whom are local. As a co-operative, it is remainder has been raised through sale of shares based on the democratic principle of one-person- ($2m) and bank debt ($1.5m). The minimum one-vote. This ensures that local people retain individual shareholding is $500 and local people majority decision-making power, even if a majority own a majority of the shares. However, there is no of the funds come from outside the local area. requirement for majority local ownership. Hence, Benefit-sharing model: Hepburn Wind has there are no guarantees that either decision- created an innovative model for sharing the making, or a significant portion of the financial benefits of the project with the community and benefit, will stay in the local community into the the neighbourhood around the wind farm. Its future.

17 The project does, however, offer other benefits of renewable energy and has a firm foundation of community support. The project was initiated in 2003 and led through the early stages of development by a local not-for-profit association. In recognition of the cash and in-kind contribution they put in to getting the project up and running, the association received $200,000 worth of shares. Income from these shares will go to a Westmill Solar Cooperative, UK. community fund for “local works that have an Courtesy of www.westmillsolar.coop. environmental, cultural or social focus”.14 Because of the class of shares, however, the association Box 5: Community Solar will not have voting rights and has no rights to The main community solar model being currently surplus capital upon wind-up on the company. pursued by groups entails a community The company, however, has chosen to have organisation, usually a not-for-profit incorporated democratically-based one-person-one-vote association, initiating a project and develops a decision-making rather than the usual company business case to build an 80-300 kW solar PV voting system of one-share-one-vote.15 array on a suitable roof space. The array needs to go on the roof of an organisation or business (the host) that has a demand profile that will match the electricity supply from the solar panels (ie. the almost all of the electricity generated from the solar array is used by the host site during the day, seven days a week). The community organisation enters into a legal agreement with the host organisation, such that: ŽŽthe community organisation leases the roof space; ŽŽthe community organisation owns, installs, maintains and insures the solar array; and ŽŽthe host organisation agrees to buy all the electricity it needs as it is produced by the solar array. Any excess energy produced is fed into the grid (and bought by the energy retailer). Any deficit is taken from the grid and charged as per a normal electricity retail arrangement. This arrangement enables the community 14 Denmark Community Windfarm Ltd. (2011) Replacement Offer Information Statement, www.dcw.org.au organisation to get a retail rate for the electricity 15 Ibid they produce, which is much higher than the wholesale rate they would otherwise get,

18 increasing the viability of the business case. For costs. They also work in partnership with a solar the host organisation, it means getting access developer for the site negotiations, installation to clean energy and the associated benefits and and maintenance. The second model is a debt credibility, without having to own, organise and financing model where instead of the host site maintain it themselves. leasing the solar array, they own the solar array and the community company or cooperative The community organisation establishes a co- provides the finance. operative or a company to hold the contracts and to issue a share-offering to the community. Groups currently pursuing variations of this model The share-offer raises the required funds for the in NSW include Cleanas (Newcastle), Central solar installation. Investors will receive dividends Coast Community Renewable Energy Association on investment, making it a financially beneficial (Woy Woy), Repower Shoalhaven (Nowra), venture, above and beyond the social and Farming the Sun (Lismore/North Coast), Pingala: environmental benefits. This model also opens Community Renewables for Sydney, Embark up investment in solar panels to sectors of the (Sydney) and more. community who aren’t currently able to invest, A variation on this model has been developed by such as renters, people with inadequate roof Portland Community Solar, where the solar array space and those who can’t afford the upfront will be owned by the Portland Sustainability Group costs of a whole solar array. (PSG) and all income will go to supporting their A key challenge facing community solar in Australia activities in the community. The project idea grew is that the profit margins are very tight and, hence, out of the need to develop a perpetual funding the management and operations must be highly source for PSG to support the important on-going efficient. Experience of community solar projects work it does in the community. Their community to date, is that finding a suitable host organisation solar project aims to “source at least $35,000 and negotiating a good agreement with them is funding from PSG partners to purchase a solar one of the most challenging aspects of project photovoltaic system of at least 30 kW, and install development. Embark has developed a solar the system on a host partner to generate at least model to assist communities to set up community $5,500 per year income to the PSG”.17 solar projects (see www.embark.com.au/display/ public/content/Getting+started+with+a+solar+proj ect for more information). There are two main variations on this model that are operating or almost operating in Australia. The first is a trust based model developed by ClearSky Solar Investments16, whereby a trust is set up instead of a cooperative or company. This limits the number of investors to 30 per project, but significantly reduces the financial administration

16 ClearSky Solar (2014) www.clearskysolar.com.au/ 17 Portland Sustainability Group (2013) www.psg.org.au

19 Box 6: Locally-owned wind farms add value

Community-owned renewable energy assets, like a wind or solar farm, help to keep the financial benefits of energy infrastructure local by virtue of local ownership. A US study comparing the economic benefits of absentee (corporate) versus local ownership of wind farms shows that the community economic benefit is significantly greater with local ownership.

Hepburn Wind, Victoria, Australia. Courtesy of Ian Hutchinson.

Table 1: Economic impact of wind projects with local ownership, compared to absentee-owned wind projects in the US1

Employment Impacts Annual Earnings Annual Economic (Jobs per MW) Impacts Output ($/MW) ($/MW)

Absentee-Owned 0.1 - 0.6 $5,000 - $18,000 $13,000 - $55,000 Projects

Projects with a Local Ownership 0.5 - 1.3 $18,000 - $43,000 $82,000 - $140,000 Component

1 US Department of Energy (2012) The impact of wind development on county-level income and employment. Available: www.windpoweringamerica.gov/pdfs/economic_development/2012/county_income_wind_development_impact.pdf

20 starting your CORE project 3

Making a community renewable energy project happen is exciting. While it’s definitely a big challenge – there will no doubt be moments of tearing your hair out along the way – every person we have spoken to who has been involved in a CORE project talks about the sense of satisfaction they feel, not only once it had started operating, but also following the many small achievements and milestones along the way.

3.1 The people Where to start? The very essence of a community project is a group of people: a community project starts with you and a few other people who share a common vision. Perhaps you already have a community group that you’re part of, or maybe you and some friends have been talking about what you can do for a while and it’s time to bite the bullet and turn those ideas into action. Perhaps there are a number of organisations and individuals in your community that would be interested in being involved, and you could create a consortium. Or maybe you need to find other people who would also be interested; you could do this by organising an event (like Repower Shoalhaven did and 160 people turned up!), holding a stall or placing an ad in the local shop, paper or community website. CORE projects typically have a dedicated team of at least five people, with a wider group involved Mount Alexander Community Renewables, Victoria, Australia. Courtesy of Jarra Hicks. in carrying out smaller tasks flowing in and out as required. At a stretch you could start a CORE project with a very dedicated group of three people, but we advise against trying with any less than that. The early stages of your project are likely to be run on no or partial funding, so you need to find people who are able to reliably commit time to the project on a volunteer basis over a year or more.

21 3.2 Understanding the stages Figure 5: Stages of CORE project development1

Initiation A group comes together, sets their aims and starts to develop the project

Social Gauge the level of support for the project within the community as well as scoping at a high level what is technically and financially possible and desirable Feasibility

A full technical study is undertaken to design the technical side of the project, an organisational structure is established and, if appropriate, negotiations are Technical initiated: both with the local distribution network operator regarding grid Feasibility connection and one or more retailers regarding electricity sale Develop a business case

Planning Planning approval is sought

Capital Raising sufficient capital to enable the project to proceed to the construction phase raising

Equipment (wind turbine, solar panels and so on) are ordered, civil works such Construction as foundations or roads are built, and the project is installed and connected to the electricity grid

Electricity is being generated; tasks in this phase include technical monitoring Operation and maintenance and financial administration

1 Modified from Ison, N. et al (2012). As Above

22 Once you’ve got a group, the next step is to Figure 6: Community Renewable Energy organise a series of meetings. But what needs to Development Framework3 be discussed at those meetings? What needs to be done and how are you going to structure the Organisational work? Structure and Governance There are two useful ways of thinking about making a CORE project happen: Community ŽŽby the timeline or stages in its development; Engagement and Communications and Visions and External ŽŽby the areas of work that need to be done. Values Factors Generally, the development of a CORE project can Technical Structures be thought about in terms of seven general stages as outlined in Figure 5.

Finance and It is important to note that different technologies Fundraising will require different levels of activity at different stages. For example, the social feasibility stage is likely to be more complex and more important for The following sections of this Guide provide will a community wind or biomass project than for a go through each of the elements of this framework community solar project. in turn. While there are reasonably defined stages of the CORE development process, there are also key areas of work that happen throughout all stages. For example fundraising will need to start as early as the project initiation or pre-feasibility stage in order to be able to pay for the costly feasibility and planning process. Governance is essential the whole way through, as too is community engagement. Community Power Agency2 has developed a framework to help groups think through the complex but achievable process of developing a CORE project, as represented in Figure 6.

2 For more information see www.cpagency.org 3 Modified from Hicks, J. & Ison, N. (2011). As above.

23 4 vision and values

There are many motivations and values that underpin community renewable energy projects. For example, a motivation behind Hepburn Wind was to find a tangible and empowering community approach to tackling climate change. For the Isle of Eigg mini-grid in Scotland however the primary motivation was a need for an affordable twenty-four hour power supply in their community.

We suggest that at your initial meeting you start by talking about your motivations and together synthesise what you aim to achieve through the project and the values that underpin your vision. Questions you could ask include: ŽŽWhy are you here? What is it about this idea that inspires you? ŽŽWhat would you personally like to achieve through this project? ŽŽWhat would you like the project to achieve? Contribute to? Transform? ŽŽHow could the different aims and motivations of the group work together? ŽŽWhich aims and motivations do you want to prioritise as a group? Answers to these questions can then form the basis of a vision statement. In going through this process it is important to recognise that things will evolve and emerge over the course of the project, but that a starting vision is inspiring and motivating for all involved. Having clear motivations and aims will help attract new people to the project too. One useful distinction to make when planning your project is the different ‘process’ and ‘outcome’ dimensions of CORE projects.1 When thinking about your group’s vision and values, try to distinguish between those that relate to the outcomes (eg. powering our town on solar power) Hepburn Wind, Victoria, Australia. and those that relate to the process of developing Courtesy of Jarra Hicks. the project (eg. community involvement, transparency, inclusiveness and having fun).

1 Walker, G. and Devine-Wright, P. (2008) Community Renewable Energy: What should it mean? Energy Policy, Vol 36, p. 497-500.

24 4.1 Process: how is the project ŽŽWho will benefit from the project? (eg. delivered? Shareholders, neighbours, local businesses, the ‘Process’ refers to how you choose to go about broader community) planning, creating and delivering the project and ŽŽAre profits shared with the local community? what role the project team, volunteers and the A CORE project can bring income to a community broader community plays in this. by way of shareholder dividends and through the creation of a community fund. It can also ŽŽGood questions to ask include: contribute local jobs, support local businesses ŽŽWho is involved and included in planning and and provide education, training and tourism decision-making? opportunities. ŽŽHow many and what type of opportunities will there be for engagement and participation? The process and outcome dimensions are closely ŽŽHow do people get (and stay) informed and related, of course, because a project that has a involved? majority local ownership is likely to make decisions ŽŽWho has power and influence? that bring greater community benefit. ŽŽHow open, inclusive and extensive is the development process? 4.3 Skills and division of work CORE projects rely on an active support base Developing a CORE project involves gaining or of people. It is the people you get on board and accessing expertise in a wide range of areas include along the way who are going to be your including: advocates and your owner-investors. By virtue ŽŽcommunity engagement and communications; of being active on the ground, having regular ŽŽorganisational structure and governance; and effective communications and offering ŽŽlegal and regulatory compliance; opportunities for people to learn and get involved, ŽŽtechnical issues around renewable energy CORE projects can have enormous potential generation as well as grid connection; for empowering and activating people. These ŽŽfinancial modelling; and processes are also likely to increase understanding ŽŽfundraising. and support for renewable energy projects, as well As your project moves through different stages of as broader environmental and social change ideas. development you will need to revisit the issue of The process side of a project is defined by how you access these skills. community engagement, which is discussed later Questions to ask include: in this Guide. ŽŽTo what extent do those skills already exist within the core group developing the project? 4.2 Outcome: what does the project ŽŽCan you recruit new people with specific skills achieve? to join the project: do you know anyone who Questions you could think about include: might fit the bill? In what way do you ask them ŽŽWhat does your project look like? What to support you (eg. as an advisor, a team technology? How big is it? member, an advocate?). ŽŽHow is the energy used and/ or sold? ŽŽWhat skills do you need to develop within

25 the group? Who will develop them and what Managing a volunteer team can be a difficult training or mentoring is available to develop thing to do: everyone involved is motivated by the these skills? vision, but may have limited time they can dedicate ŽŽWhen will you need to hire external to actually doing the work needed. To avoid organisations with specific skills to complement frustration and false expectations, it can be helpful what you already have and are committed to for everyone involved to have clear responsibilities, developing? including: role descriptions, reporting or ŽŽWhat will be the split between paid, pro-bono accountability mechanisms (who to and when) and and voluntary work? an indication of the time they can reliably commit each week. Setting up a clear group structure and No CORE project we know of has been developed delegation of tasks will also help your volunteer by the community without the support of at team to operate most efficiently. Separating your least one external organisation. The specialist group’s governance (oversight, strategic direction, skilled people you seek out may include lawyers, policies and evaluation) from operations (delivering renewable energy design and installation tasks, administration) will be important for effective professionals and environmental impact assessors, project management and delivery. to name a few. Also, different people will want to contribute A few organisations including Embark and the in different ways, finding a good fit for each NSW Regional Clean Energy Program are trying person’s skills and interests will help ensure they to create standardised documents for community are satisfied as a volunteer and will want to stay energy projects to save different projects repeating involved. For example, some people will want to the same work over and over again. It cannot be be involved in governance and oversight of the stressed enough how important it is for groups not project, whereas others will be more interested in to re-invent the wheel with each new project, but hands-on work and ‘getting stuff done’. to seek out and gain benefit from other people’s experiences. It is worthwhile contacting the Finally, don’t forget the importance of celebrating Coalition for Community Energy (C4CE)2 to find your successes and looking after your group out who could help you and what other groups are by also doing fun things together, even if its just working on similar issues and models currently. meeting up to work in the same place. While one of the benefits of CORE projects is that many people work on them for the love of it, most (although not all) projects we know of, have employed at least one person in a Project Coordinator role to ensure that the project gets the attention it needs within the competing time pressures of those involved. Again, funding and recruiting for this position will be an important part of the process.

2 www.c4ce.net.au

26 Mount Alexander Community Renewables volunteers at a stall, Victoria, Australia. Courtesy of Jarra Hicks. 27 organisational structures 5 and governance

Clear and transparent governance of a CORE project is essential. This involves setting up clear decision-making and communications processes and establishing a legal entity.

There are two main phases of work in relation to existing, sympathetic organisation to act as an organisational structure and governance: auspice. The rationale for an interim structure is twofold. Firstly, it codifies how the project ŽŽThe interim coordination and decision making structures for the project development phase operates through an agreement or constitution. (typically up to the end of the technical feasibility And secondly, it enables the project to raise money stage, see Figure 5). to cover the costs of project development (see ŽŽThe final legal structure and governance Section 8 Finance and Fund Raising). The most structures for the operation of the CORE common approach is to set up an incorporated project. association (see section 5.3 ‘Legal Structures’ for more detail). This means many CORE projects have two organisational structures in their lifetime. Note that this is just one possible approach to project coordination and initiation. Regardless, seeking out and/or developing good group work 5.1 Project development phase and facilitation skills will enable your group to When a CORE project is starting out, clarifying develop processes and structures that work best or developing clear decision making processes, for you. There are some very useful toolkits listed norms, communications structures, channels in the resources section that will guide you through of responsibility and accountability etc. will this process. be essential. To this end we recommend that once you’ve worked out your project aims, you consider establishing working groups to tackle 5.2 Three Models of CORE development important areas such as community engagement, During our travels, we have observed three main organisational structure and governance, models of CORE development: fundraising, and technical project development. ŽŽcommunity organisations Keep in mind that decisions in one area or working ŽŽcommunity investor co-operatives or group will affect the others, so ‘all in’ coordination companies, and meetings with delegates from each sub-group ŽŽdeveloper and community partnerships. and associated decision making processes are essential. Below you will find a description of each, along with examples and recommendations of Because developing a business case and final appropriate legal structures for delivering each organisational model will take a lot of time and option. A detailed description of each legal will rely on information you don’t yet have, many structure can be found later in this section. groups decide to establish an interim structure. This structure may involve establishing a whole new organisation, it may be a project of an existing organisation, or it may involve approaching an

28 Community organisation own and invest in the project, to varying degrees Here, the CORE project is initiated, led and and receive dividends according to the proportion owned by a community organisation, such as of shares owned. Often, the developer owns a an association, sustainability group, school, or majority of shares and holds most of the decision- local trust. These organisations are made up of making power. local members and are usually not-for-profit. The For example: Middelgrunden (Denmark), Infigen/ difference between this model and the next one CENREC (NSW, Australia). is that, while members of the organisation may donate to the project and will have a say over its Appropriate legal structures for the community direction, they are not investors and won’t earn a owned component: any of the structures dividend. Instead, all the money generated goes appropriate for the community investor model back to the organisation. These projects tend to above, depending on the desired outcomes. be smaller than the other two models. For example: Isle of Eigg (Scotland), Portland Community Solar (Victoria). Box 7: Partnering with a commercial Appropriate legal structures: incorporated developer association, non-trading co-operative and public Several innovative models for community- company limited by guarantee. developer partnerships are emerging, particularly for wind farms. For example, Infigen, an Australian Community co-operative or company wind developer, is supporting the community in Here, the CORE project is initiated, led and owned Central West NSW to set up a co-operative to by a co-operative or a company whose member- purchase at least one turbine in their Flyers Creek owners are community investors. These investors can be local & non-local individuals, organisations, wind farm, which is currently in development. It small businesses and so on. Income generated is rare for communities to have the financial clout is distributed back to investors. Often, but not to be able to afford more than a small-medium always, income is also distributed to the broader renewable energy system(s), so owning a share community through the creation of a community in a larger development can make a lot of sense. grant fund. Partnering in this way also provides a means for the local community to own part of the wind farm For example: Hepburn Wind, MinWind (USA). and increases the level of local benefit and support Appropriate legal structures: trading co-operative from the project. See also the Middlegrunden and public company limited by shares. project in Box 3. Developer and community partnership Here, either the community or a renewable energy developer initiates a renewable energy project and both parties agree to partner. The community often leads the community engagement/consultation and the developer leads the technical studies. Both the developer and community members

29 5.3 Legal Structures community ownership in a developer community This section details the four main legal structures partnership. most suitable to CORE projects in Australia. This information is just a starting point. You will need Different legal structures offer different features to seek legal advice before making a decision. and benefits. It will be important to choose a legal structure that fits your desired ownership/member Company profile, as well as your fundraising and benefit There are four main company types in Australia: distribution strategies. Some groups establish ŽŽA private company limited by shares (Pty Ltd.): hybrid structures, involving a partnership between They are not allowed to publicly seek investors, two different legal entities in order to access the meaning they cannot issue a public share best of two legal structures. Often, choosing offer document, and cannot have more than a legal structure that is going to work for you 50 shareholders. Shareholder liability is limited involves balancing different priorities, such as the to the value of their shares. This is the most desire for majority local ownership with the realities common company structure. of raising enough funds for the project to proceed. ŽŽAn unlimited private company: similar to above, There are several key decisions to keep in mind except that shareholders have unlimited liability, when contemplating what legal entity will suit your meaning they are responsible for all and any project best. These are: debts of the company, regardless of the value of their shares. ŽŽWhere will the money for the project come A public company limited by shares (Co. Ltd.): from? How do these legal structures enable or ŽŽ constrain fund raising? there is no limit on the number of shareholders and shareholders can be sought publicly, but ŽŽWhere will the money generated by the project go? Who benefits? shareholder›s liability is limited to the value of ŽŽCan only local people be members? Or others the shares they own. from further afield? What about businesses? Or ŽŽA public company limited by guarantee: this local government? is often used by not-for-profits as there is no ŽŽWho is included or excluded in decision- share capital. Each shareholder is liable for the making? Who do you want to have majority amount they agree to contribute if the company of the decision-making power? How do you is wound up. guard against take-over by other interests in the All of these company structures are governed longer term? under the Corporations Act 2001, which is ŽŽWho has power in this process and how national legislation regulated by the Australian equitable is it? How does this fit with the Securities and Investment Commission (ASIC). group’s original vision and values? All companies are subject to legal responsibilities ŽŽHow do these questions relate to your process (including lodging annual reports, auditing financial and outcome goals and/or vision for the statements, paying tax) and, hence, are subject to project? high degrees of transparency and accountability. The legal structures outlined below can be used to Companies are a very common and familiar legal deliver 100% community ownership or to facilitate structure in Australia. As they come under national

30 legislation, companies are nationally recognised and aspirations through a jointly-owned and and able to conduct business (and take on democratically-controlled enterprise”.2 shareholders) in any state. Cooperatives are established according to Of all the different company structures, the one the international principles of co-operatives, most likely to be appropriate for a CORE project is as outlined by the ICA. The principles include a public company limited by shares. The primary voluntary and open membership, democratic benefits of this type of company structure is its member control, member economic participation, ability to raise funds through issuing shares to the autonomy and independence, information sharing public, to limit the liability of investors and to take and a concern for the community. As a result, the on an unlimited number of investors. However, co-operative structure embeds many of the social company share offer documents tend to be and broader community benefit goals that many much more expensive and complicated than the CORE projects seek to create. equivalent co-operative documents. There are several types of co-operatives, but the Generally, a company’s primary motivation is to most suitable for a CORE project is a ‘trading’ generate profit for its shareholders. This could co-operative. A trading co-operative is able to become a point of contention if your project’s key distribute any surplus funds to its members (a non- motivation is not profit for shareholders, although trading co-operative must reinvest all surplus into there are ways to structure the company to reduce the co-operative for the benefit of all members). It this. However, “corporate or institutional investors is much easier to source the required investment in often prefer the public company structure, as a CORE project if you are allowed to distribute the it focuses on generating a return on their share surplus to those investors. capital”.1 This can be useful if your fundraising Under law, a co-operative requires active strategy relies on these investors. participation from its members. This means that all Example: Denmark Community Windfarm members need to “undertake active participation, which uses a private company limited by shares support or a relationship with the primary activity structure. of the co-operative”.3 The primary activity of a co- operative is set out in its constitution. For a CORE Find out more: Australian Securities and project, the primary activities might be to own a Investment Commission (ASIC) www.asic.gov.au solar farm and sell the electricity produced, as well Co-operative as to raise awareness about renewable energy A co-operative is a democratic, member-run and energy efficiency. Thus, active membership legal structure established to facilitate the mutual might require subscribing to an energy efficiency involvement and benefit of its members. The information service offered by the co-operative. International Co-operative Alliance (ICA) defines Directors of a co-operative have a responsibility a co-operative as “an autonomous association to cancel the membership of inactive members of persons united voluntarily to meet their so if you choose a co-operative as a legal common economic, social and cultural needs structure, give careful consideration to the ‘active

2 International Co-operatives Alliance, www.ica.coop. 1 Higginson, S. (2011) Advice to New England Wind – Legal Entity & Structure, Environmental Defender's Office Ltd. 3 Higginson, S. (2011). As above.

31 membership’ test when adapting the model rules Incorporated Association for your co-operative. An incorporated association is a commonly used legal structure for community groups and clubs The democratic principles of a co-operative means of all kinds. Associations are a suitable structure that each member gets one vote, regardless of for groups with a common purpose who are not how many (or how few) shares they hold. seeking to return financial benefit to members. Co-operatives are governed by state-based law; An association is the easiest and cheapest legal in NSW this is the Co-operatives (Adoption of structure to set up and requires the least time National Law) Act 2012. States and Territories are and expertise to do so. The on-going reporting in the process of aligning their separate laws into and compliance requirements are minimal and a common Co-operatives National Law, which has inexpensive. However, they do still have legal currently been adopted by NSW and Victoria. The responsibilities (submitting annual reports including national law will resolve issues of misalignment financial statements). between states that placed complex limitations on the ability of cooperatives to advertise and accept An association is its own legal entity, and hence, investment outside their home state4. If choosing provides liability protection to its members and a cooperative structure, be aware that this may committee members in legal transactions. It can make it impractical for you to accept investment enter into contracts, including owning property, from some states and territories, until all states getting bank loans, making investments, etc. have adopted the national law. However, all profits made must go back to the association and be put towards fulfilling its Co-operatives are subject to very similar reporting purpose, as per its constitution. and accountability requirements as companies. Co-operatives must have a board of directors, As not-for-profit entities, associations are able submit audited financial statements and annual to apply for Charity Tax Concession status and reports. There is no limit on the number of access tax exemptions and other tax benefits. members a co-operative can have and each Associations can also apply for Deductibility Gift member is only liable for the amount of their share- Recipient (DGR) status, allowing third parties to holding. A co-operative can enter into and enforce make tax-deductible donations. These can be very contracts, including the ability to hold, acquire and useful if the association’s financial model relies on deal with property. donations. DGR status is also a requirement of some grant-givers. Example: Hepburn Wind (VIC), Westmill Solar Cooperative (UK) Associations are governed by state-based law which requires that a majority of the associations’ Find out more: www.fairtrading.nsw.gov.au/ftw/ activities take place in that state. In NSW this is the Cooperatives_and_associations Associations Incorporation Act 2009. An association would be an appropriate structure for the early phases of a CORE project, before investors are sought. Often, CORE projects 4 See the explanations in the Hepburn Wind FAQ: http:// start as projects of an existing association. hepburnwind.com.au/faq/

32 An association would also be an appropriate be a way of delivering a CORE project without the structure for a project that seeks to re-invest all need for community members to play a particularly earnings into the activities of the association. It active role. may also be an appropriate co-investor in a larger Example: ClearSky Solar renewable energy project, provided all revenues were reinvested to promote the purposes of the Find out more: Australian Tax Office (ATO) association, as with the Denmark Community www.ato.gov.au/businesses Windfarm Inc (a not-for-profit association) in See the Resources Section for additional the Denmark Community Windfarm Ltd. (Box 4 information about legal structures. above). A final word on legal structures Example: Portland Community Solar and the early Bear in mind that choosing a legal structure is stages of Mount Alexander Community Wind. not just a technical decision of matching your Find out more: NSW Office of Fair Trading requirements to the advantages of a particular www.fairtrading.nsw.gov.au/ftw/Cooperatives_ structure. It will also influence how your project and_associations is perceived by the community and by potential investors. The rules of a company can be written Trust to give one vote to each shareholder (the norm for A Trust can be established by members of a co-operatives) rather than one vote per share. But community or the ‘beneficiaries’ to oversee assets choosing a co-operative sends a message that and distribute financial benefit. A Trust could be your enterprise is about more than just making established to own and operate a CORE project. money, while a company structure may be more Trusts are allowed to distribute profit to their familiar and therefore reassuring to larger individual beneficiaries. and institutional investors. Jenni Matilla, from Matilla Lawyers explains on Choice of a legal structure may also influence the Embark website: “The intended participants the support structures you can access. The will need to enter into a trust deed and the deed international co-operatives movement has a will contain details of how the trust is to operate. strong tradition of mutual support and education Property, assets and equipment involved with as part of its mandate. Similarly the emerging the project may be held by the trust on behalf social business movement has its own distinctive of the beneficiaries. The trustees are appointed umbrella bodies, conferences, and training and given specific powers under the trust deed, events. Also, it is worth considering that grants outlining how they may exercise control over the are often only available to not-for-profit entities. assets and operations of the project on behalf Incorporated Associations are by definition not- of the beneficiaries.” Trustees are appointed (not for-profit; Companies and Cooperatives can be elected) by the beneficiaries, to govern the Trust. established as not-for-profit if desired. Beneficiaries then have little direct input into how the Trust is run and how any profits get distributed. This could be a point of contention if a CORE project were to pursue a Trust structure or it could

33 community engagement 6 and communications

Community engagement and participation is one of the defining features of a CORE project. Community engagement goes beyond standard consultation processes that are required by government planning processes and that corporate renewable energy developers typically employ.

Good community engagement builds trust, feelings outcomes of development.3 A common way of of ownership, and a sense of empowerment through conceiving these varied levels of participation is the providing meaningful opportunities for the wider International Association for Public Participation’s community to input into the project’s development Spectrum of Public Participation4 (see Appendix and on-going ways to be involved. It also ensures A) that positions practices along a spectrum from that the project delivers the most possible benefit, simply informing, through to empowering, in the and meets the least possible resistance. process of engagement. This spectrum reflects the different degrees of influence and control given to Community engagement can be seen as the the community through participation in planning participation of community members in project and development. Thus, community engagement development, from inception to operation. It is can cover a range of activities, reflecting different a practice that fundamentally requires a two- desired depth of engagement. Paying close way recognition of the existing capacities of attention to which of these depths of engagement people to be active participants, able to identify is chosen, and why, is an important aspect of and contribute to devising effective solutions designing a community engagement approach. to experienced challenges1. Marrying the term ‘community’ to ‘engagement’ helps us to Clear and consistent communication remember that the focus of engagement goes throughout the project life will help to engage beyond individuals and places the emphasis key stakeholders, and to keep them engaged. on the collective and on seeking development Having a plan for how you will communicate with outcomes that consider the diverse needs that key stakeholders, social media and the media exist within any community2. This helps to ensure throughout the project stages will help to direct that the project is appropriate and beneficial for the this. Make sure to include media and social media local community at large alongside any community engagement events you plan, to help maximise your positive exposure. Although community engagement has become a commonly used term, its delivery on the Examples of community engagement and ground has been very uneven and has reflected communications mechanisms include: varying degrees of commitment to genuinely ŽŽA survey of your local community, to gauge involving people in directing the process and opinion of different options associated with your

1 Hickey, S. & Mohan, G. (2004) ‘Towards Participation as project. Questions you could ask include: do Transformation: Critical themes and challenges’. In Participation: you want this project to be owned by a majority From Tyranny to Transformation? Exploring new approaches to participation in development. London: Zed books. P. 3. 3 Eversole, R. (2010) Remaking participation: challenges for 2 DSE (2005) Effective engagement: building relationships with community development practice. Community Development community and other stakeholders, Melbourne: Victorian Journal, Vol. 47, p. 29–41; Hickey & Mohan 2004. Government Department of Sustainability and Environment. p.12. 4 IAP2 (2014) Public Participation Spectrum. Sydney: International Association for Public Participation.

34 Mount Alexander Community Renewables community workshop. Courtesy of Jarra Hicks.

of local people? Do you want commercial or once the project is operational, so people can government investors? How should benefits be come and ask questions. distributed? ŽŽA participatory and well-facilitated community ŽŽRegular stalls at community events and markets. planning process to make key decisions or ŽŽA printed or web-based newsletter. receive feed back on an idea. ŽŽSite visits to your proposed site and to similar ŽŽFilm nights on a relevant topic. already operational projects, for example a ŽŽDrop-in information sessions. community hydro project or a wind farm. ŽŽVolunteer and advocate trainings to get people ŽŽA photomontage in a public location of what the skilled up to talk about the project and chosen project will look like or a live display of production technology. or monitoring data. CORE projects can take a significant period ŽŽTown meetings or forums; including inviting of time to develop, generally a minimum of 12 people to speak who have already developed months for a community solar project and more similar projects. than 3 years for community wind and bioenergy. ŽŽPublic launches by high profile people at different One of the challenges you will face is how to stages in the project’s development. keep the community engaged along the way. ŽŽA community picnic while the project is being This will require good planning and thinking about constructed or at key events, as done by what community engagement mechanisms are Hepburn Wind. appropriate at different stages. See the resources ŽŽRegular open days and working bees at the site section for more ideas and information.

35 technical 7 considerations

Although we’ve been largely talking about electricity production, CORE projects can also produce heat. The best technologies currently available for community renewable electricity projects are wind, solar PV and micro-hydro. For community renewable heat projects, biomass boilers and other bioenergy technologies are appropriate. For combined heat and electricity (‘cogeneration’) projects, bioenergy is the best renewable technology available, although concentrating solar thermal may be an option in the future. In this section we provide a high level overview of these technologies, as there are numerous resources available that provide detailed insight into different renewable energy technologies (see Resources section). Additionally, we will pose some questions or technical issues for your consideration when moving forward with a CORE project.

7.1 Renewable energy resources and or back into the electricity network. Solar PV is technologies a modular technology that can be scaled from Firstly, there is the question of what renewable household systems to utility scale. energy resources you have available. This one is a Resource Requirement: Solar PV is more efficient deal breaker. For example if you don’t have a river where there is more sunlight, although solar panels or stream near your community a hydro project is will generate some electricity on cloudy days. clearly out of the question. It is a little less obvious Panels should be angled as close to north as with wind power, as you won’t know the wind possible on a tilt that means sunlight hits the panel speed until it’s measured. This section outlines the at as close to a 90 degree angle as possible. Panels key renewable energy technologies and some of should also be installed in an unshaded location. the basic resource requirements. CORE Status: 25 Community solar PV projects in Solar PV development. The first community solar projects in operation in Australia have been pioneered by Clear Sky Solar (see page 21). More Information: Australian PV Association - www.apva.org.au Australian Solar Council - solar.org.au Clean Energy Council - www.cleanenergycouncil. org.au/technologies/solarpv.html Installing small scale renewable energy systems Westmill Solar Cooperative, UK. Courtesy of www.westmillsolar.coop. in NSW - www.energy.nsw.gov.au/sustainable/ renewable/solar/solar-scheme Description: Solar photovoltaic (PV) panels generate electricity when photons in sunlight hits silicon cells in the panel thereby dislodging electrons. This generates low voltage direct current which is converted by an inverter to 240 volt alternative current which is fed into your house

36 Wind more are in development – New England Wind (NSW), MACWind (Victoria), CENREC (NSW) and Woodend (Victoria). Community wind projects are common across Europe and the US. More Information: Clean Energy Council - www.cleanenergycouncil. org.au/technologies/wind.html Hepburn Wind - hepburnwind.com.au Denmark Community Wind - www.dcw.org.au Samso Island, a 100% renewable energy Vic Wind Alliance - www.vicwind.org.au island in Denmark. Courtesy of Jarra Hicks. Embark - www.embark.com.au Description: The most efficient modern wind Bioenergy turbines are those with three blades, shaped like an aerofoil. As wind blows at a 90 degree angle to the blade, areas of lower and higher pressure is created above and below the blades causing them to rotate, which in turn drives a generator in the box (called a nacelle) behind the blades. These are called horizontal axis wind turbines and, due to the laws of physics, are more efficient than vertical axis wind turbines. Wildpoldsried, Germany, a net energy exporter and all Resource Requirement: Wind turbines require through community-owned bioenergy, wind, solar a good wind resource to maximise output, this and hydro. Courtesy of Jarra Hicks. means fast flowing smooth air. Turbulence reduces Description: Bioenergy is the conversion of an the efficiency of a wind turbine and puts extra organic feedstock (eg. crop waste, animal dung, mechanical stress on the mechanism. Thus, specialty crops) to energy – heat, electricity or locations with a smooth high surface, free from both. There are three different processes used for obstacles such as trees, buildings, rocks etc are bioenergy production around the world. The first is preferable. As such, urban areas are generally anaerobic digestion, which converts wet organic unsuitable for wind systems, while highland or materials into methane through a composting coastal farmland areas are generally ideal sites. process without the presence of oxygen. The Wind maps exist and should be your first port of methane can then be burnt to generate heat and call for assessing whether you have a good wind electricity. The second is direct combustion of resource. However, actual wind monitoring for 12- drier biomass feedstocks to generate heat and/ 18 months will be required at your preferred site(s) or electricity. The third option is pyrolysis which to prove the wind resource. involves heating feedstocks in the absence of CORE Status: Two operational community oxygen. This drives off gases which can be burned wind projects in Australia – Hepburn Wind and to produce heat and optionally electricity. The solid Denmark Community Wind. A further four or remainder is call biochar and can be used as a soil

37 conditioner. Biochar can store carbon in the soil Small Hydro for long periods so the process can actually remove CO2 from the atmosphere. Resource Requirement: There are four main factors in determining a good bioenergy resource – the energy content of the feedstock, location, quantity and sustainability. Some organic materials have higher energy content than others. For a bioenergy system to be viable, a reasonably large quantity of the same or complementary feedstocks are required Torrs Hydro Cooperative, UK. Courtesy of Nicky Ison. in close proximity, as the greater the distances the greater the transport costs and the less economical Description: Small hydro systems are those that the project. The final factor is sustainability. For harness the power of flowing water, usually rivers example native forests or native forest residues or streams to generate electricity. They are distinct should not be used as a bioenergy feedstock and from large hydro plants such as those in the in NSW it is illegal to do so (for generators greater Snowy Mountains, as small systems are usually than 200 kW).1 The second element of sustainability run of the river systems which don’t require a dam is whether there is a competing demand for the or reservoir, or if they do they are very small and feedstock which sits higher on the waste pyramid. thus have significantly less ecological impact than Most bioenergy feedstocks are waste products large hydro systems. The most common small of other processes e.g. green waste, food waste, hydro systems for community energy applications manure etc, if these can be reused or recycled e.g. are reverse Archimedes screws for small vertical composted they may be better uses than energy drop locations such as a weir, and kaplin or pelton generation. This will require investigation2. wheels for longer vertical drop locations. Resource Requirement: The energy potential of CORE Status: There is one potential community a river depends on two key features – the volume bioenergy project in development in Australia in the of water flowing and the vertical drop (known as Blue Mountains. Community bioenergy projects are head). The greater the volume of water and the common in Germany, Austria and Denmark. further the vertical drop, the greater the energy More Information: potential. Consistency of flow throughout seasons Bioenergy Australia - www.bioenergyaustralia.org is also important. Bioenergy Handbook - www.energy.nsw.gov.au/ CORE Status: There are two potential community sustainable/renewable/bioenergy small-hydro projects in development in Australia Bioenergy Scoping Study - www.rdanorthernrivers. one in Victoria and one in Tasmania. Community org.au/page/Content?&select=List&rowid=2729 small hydro projects are common across the UK and Germany. 1 The NSW Protection of the Environment Operations (General) Amendment (Burning of BioMaterial) Regulation 2003 More Information: See Resources Section 2 See for example the NSW Energy from Waste - Draft Policy Statement for Public Consultation

38 Concentrating Solar Thermal (CST) More information: Australian Solar Thermal Energy Association (AUSTELA) - www.austela.org.au

7.2 Grid Connection When developing your project, you will need to know what electricity infrastructure (grid networks) exists in your community. There are four main answers to this question: Gemasolar, Seville, Spain. Courtesy of www.torresolenergy.com 1) There is good network coverage with capacity Description: Concentrating Solar Thermal (CST) to integrate distributed electricity projects. technology involves concentrating sunlight using This would mean a new CORE project would mirrors onto a point or tube filled with a fluid. The likely be able to connect into the existing grid fluid is heated from the concentrated sunlight infrastructure with little extra upgrade. Even if and then used to generate steam to drive a your project is ‘behind the meter’, it will still need turbine, generating electricity. The four main CST to be grid connected (see Box 5: Community technologies are power towers, dish systems, Solar on page 21) linear fresnel and parabolic trough systems. 2) There is good network coverage with no Additionally, the heat generated can be stored as capacity. This would mean there is a good molten salt, which can then be used to generate electricity distribution and transmission network electricity when the sun is not shining, e.g. in your community but it doesn’t have the ability overnight. Storing heat is a lot more efficient than to accept and export more electricity. storing electricity. 3) There is bad network coverage. This typically Resource Requirement: CST systems require occurs at the outer limits of the electricity grid, direct (not diffuse) sunlight, and as such work best where supply is unreliable and there is no extra in locations that are clear and sunny with little cloud connection capacity. cover during the year. As such, coastal and tropical locations are not generally appropriate, however, 4) You have no electricity network; your desert like locations often work well. However, CST community is off-grid. systems like any steam generators (coal, gas etc) Where you are in this list will determine how easy also work best with access to water for cooling it will be to connect to the grid and to export purposes (though they can be air cooled). the electricity you generate, and how much this CORE Status: CST is one of the newer renewable connection is likely to cost. If you can’t connect to energy technologies however, there are many the grid you will need to consider energy storage systems operating in Spain, the US and the Middle technologies such as batteries or pumped hydro. East. As yet there are no operational community- You may also consider setting up a community owned CST plants in the world. Perhaps Australia owned mini grid like the one on the Isle of Eigg.3 could develop the first one? 3 www.isleofeigg.net/eigg_electric.html

39 Box 9: Energy storage planning assessments, grid connection, civil works) Currently there is much talk of the role of energy can be offset against greater generating capacity. storage. Significant amounts of money are presently Decisions about project size will also be influenced by being invested in energy storage technology your objectives and by what you believe is the capacity research and commercialisation, with industry of your community to raise capital. Some community analysis predicting dramatic reductions in cost projects aim to produce all or a significant proportion in storage technology by 2020. The implications of the electricity used in their geographical area while of this is that individual houses, businesses others are scaled to the needs of a particular building. and even entire communities if they establish mini-grids4 will have an affordable choice as to 7.4 Project Location whether to connect to the centralised electricity The final technical issue to consider is location: grid or go energy self-sufficient. This energy where will you site your project? As with scale, this storage revolution will create new and exciting will partially be answered by the electricity network opportunities for CORE in coming years, including location and what renewable energy resources you solutions to avoid expensive grid upgrades. It have available and where. For example, if you have might even open up possibilities for whole towns a weir in a good sized river and are considering a to buy back and manage their own mini-grids. micro-hydro project using a reverse Archimedes screw, there is no question of location – there’s Connecting to the electricity grid can be one of the only one place it could be. However, with wind most challenging and expensive aspects of a CORE and especially solar projects there is often more project. To find out more about your local grid and the choice. Motivations that might influence the choice process for connecting, you will need to talk to the of location include education outcomes and the local electricity distribution network service provider desire for visibility. If one aim of your project is to raise (DNSP). It is important to start the process of finding awareness and public education about renewables, out about grid connection and its likely costs as you may want your site to be highly visible and even early as possible, as it can make-or-break a project. in an iconic location. On the other hand if there’s community opposition to wind in your area, you may want to site the project in a place where it will cause 7.3 Project Size the least controversy (without reducing energy yield). The third technical issue to consider is project size: how many kilowatts (kW) or megawatts (MW) will Many people focus on the technology aspect of suit your site and need? In part this question will CORE because being a renewable energy project is be determined by the renewable resource and grid what defines it from other community development capacity you have available but the project size will projects. Nevertheless, just because it is a ‘techy’ also be dependent on cost. The bigger the project the project does not mean that the technology should greater the cost and the more money you will have dominate and determine the nature of the project. to raise, but also the cheaper each unit of generated You have many choices you can make and these energy is likely to be. There can be economies of scale technical considerations, while important, should not with bigger projects, as associated costs (such as outweigh considerations about what will best suit your community. 4 www.ata.org.au/wp-content/projects/Off_grid_summary.pdf

40 finance and fundraising 8

8.1 Fundraising stages 8.2 Fundraising mechanisms When developing your CORE project, there are For both stages (development and capital two main phases of fundraising: raising) there are a series of different fundraising and financing mechanisms available - these ŽŽFunding the project development to planning are outlined in Table 1. Most projects use a approval; and combination of financing mechanisms at different ŽŽCapital raising once a full business case and stages. share offering has been developed and planning approval has been received. It should also be noted that some financing In Australia, funding the development phase of options aren’t possible with some organisational a CORE project (Stages 1-4 in Figure 5: Stages models. For example, if you want to develop a of CORE project development) has been one of community organisation model of CORE (see the biggest challenges to date. This is because Section Three Models of CORE development), communities, unlike large companies, don’t have a community share offer would not be possible large reserves of capital to draw on to fund the as this financing mechanism leads to an investor development phase. Further, there is only the idea model of CORE. of a project and no solid business case, as such early investment is risky. However, this is the case for the development stage of any new venture, whether it is a renewable energy project or a new restaurant. The difference between a CORE project and a new restaurant, is that the business model for a restaurant has been proven thousands of times over, while there are only a couple of CORE projects operating in Australia. Because CORE is a new model of renewable energy development in Australia, it is still ‘proving itself’ and projects are required to cover the ‘pioneering costs’ associated with a new industry. Many groups and organisations are working to overcome this challenge in different ways. Once a project has planning approval and the business case is established, it is easier to go out to the community and to financing organisations to secure investment to fund Stages 5-7 (Figure 5). However, it is important to note that the construction costs are the largest part of most CORE projects, so the capital-raising phase can be challenging due to the need to raise a large amount of money in a relatively limited time period.

41 Funding Detail Mechanism EQUITY INVESTMENT Community Share A community share offer raises capital by inviting members of the community Offer to invest in the project. This involves preparing, publishing and distributing an offer document. The terminology (prospectus, disclosure statement, share offer,  Project product disclosure statement etc.) and legal requirements of the document will vary development depending on the legal structure chosen and jurisdiction.  Capital raising Inviting members of the community to invest makes them members of the project’s organisational structure and usually entitles them to participate in formal decision making (for example at Annual General Meetings). You must do your due diligence at the prospectus stage and as such expect significant legal and accounting costs, including in some cases the need for a Financial Services Licence1. Different CORE projects set different criteria for who is able to invest, how much they are allowed to invest and what associated benefits (for example voting rights) investors should receive. Examples include: • Requiring all, a majority or only partial local investment. • Defining local in different ways. • Only allowing individuals, but not organisations or businesses, to invest. • Placing an upper or lower boundary on investment. • Having only one investment amount, for example $1000, no more, no less. • Including or excluding local government. • Allowing each member only one vote, no matter how much they invest. Angel Investment Angel investors are those that put equity into a CORE project during the project development stage, before there is any guarantee of project success. To  Project compensate for this risk, angel investors are typically offered a higher return, or a development greater number of shares in exchange for their investment than those investing at a  Capital raising later stage in the project. If you consider this mechanism, you will need to develop a business case which sets out clearly the benefits to early investors and ensures that this does not undermine the viability of later investment. Institutional Institutional investors such as superannuation funds have significant reserves of Investors capital. However, the size of CORE projects is often too small for most super funds. Even so, a number of organisations are looking into what it would take to unlock  Project this source of investment for community renewable energy projects. This may development involve grouping many projects so the starting capital base is much larger, which in  Capital raising turn will require many more projects to be close to the investment ready stage.

42 Funding Detail Mechanism DEBT FINANCE

Loans Some CORE projects are part financed by loans from banks, credit unions, individuals, organisations or government. Because CORE projects are new in  Project Australia, there is not a long track record of securing debt financing. However, development Hepburn Wind was successful in securing a loan from Bendigo Bank, while some  Capital raising other financial institutions such as Credit Unions have expressed interest in doing so for future CORE projects. Securing a loan will only be possible once a strong business case has been developed and the bank can assess the likelihood of the venture to re-pay the debt. One of the most difficult aspects of getting a loan for a CORE project is the lack of security. Most communities do not have any form of security to offer banks, apart from the earning potential of the project itself, which may not always be fully realised. In Scotland a program was developed called CARES which provided unsecured loans at the project development phase of CORE projects. While this was risky, the default rate on the loan was half that of commercial ventures.2 In the case of Hepburn Wind, an organisation provided a loan security. Once a greater number of CORE projects are operating, loan maker's confidence should increase, thus increasing the access to this type of funding. It may also be possible to secure a loan from a wealthy individual, philanthropic or commercial organisation. GIFTS

Grants Grant funding, if available, is very useful, particularly in the early and most risky stages of a project. A grant to help fund the project from the idea phase through  Project pre-feasibility, to the point where you have a firm idea of what the project will look development like, is very useful. However, grants can be tied in ways that do not fit with your  Capital raising project aims. Grants have played an important role in all successful CORE projects in Australia to date. For example, Hepburn Wind secured a total of $1.7million in grant funding from Sustainability Victoria and Regional Development Victoria. Grant makers include all levels of government (council, state and national) as well as philanthropic bodies, such as foundations. As CORE is new in Australia the funding landscape is unfamiliar with it and there are very few CORE-targeted grants. A further challenge is that CORE projects can be characterised as social enterprises: while their key motivations are environmental and social purposes over personal profit, most do ultimately return a profit to their investor-members. Paying a dividend (even if only modest) is often a necessary condition to attract

43 Funding Detail Mechanism Grants continued investors, given that CORE projects often require large investments to reach their fundraising goals. The philanthropy sector does not yet understand the co-benefits of this CORE model and, hence, find it difficult to fund CORE projects as they are not purely not-for-profit. At a government level, in May 2013, the NSW Office of Environment and Heritage (OEH) released $411,000 of grant funding for the early stages of nine CORE projects. The number and type of grants available changes all the time. Checking websites like ARENA, OEH, Our Community, Regional Development Australia and contacting your local council to see if there are suitable grants is a good idea. Donations Donations are even more untied than grants and are always welcome! To attract (including donation donations though, you will need to be able to convince someone your idea is crowd-funding) worthwhile and likely to succeed and that you are trustworthy. All easier after you’ve done the pre-feasibility stage! There are also legal requirements around seeking funds  Project from the public, so make sure if you plan a fund raiser you check out the Office of Fair development Trading web site or get some legal advice. Due to the typical size of a donation, even  Capital raising a large one, it is unlikely that you will be able to fund more than a small CORE project from donations alone. To get big donations, it helps to have Deductible Gift Recipient (DGR) status. DGR enables registered charities to accept tax-deductible donations. This is a great incentive for people to make donations, especially big ones! Having DGR status is also a requirement of some grant conditions. Achieving DGR status can be a long and involved process, which is why many groups approach organisations to act as an auspice. Crowd funding is one of the newest donation based fundraising strategies. It involves using one of the many crowd funding websites (e.g. Pozible, Start Some Good, Kick-starter) to get many small pledges of funding from many people. People are offered many different levels at which they can pledge support and only if your fundraising target is reached do people’s pledges turn into actual donations. In Australia, the Citizens Own Renewable Energy Network Australia Inc (CORENA - http://corenafund.org.au) is taking this approach to CORE. A successful crowd-funded initiative is run like a campaign, you have to work out your target audience and your key messages. Creating a short video about what you are doing and why people should fund it is also a good idea. It is better to think of crowd funding as peer-to-peer funding that makes it easy for people you are already in contact with to donate some money to your project. If you get your strategy right (and

44 Funding Detail Mechanism Donations are lucky) they will share the crowd funding appeal with their friends and so on. Some (including donation crowd funding campaigns go viral, where thousands of people you’ve never heard of crowd-funding) start donating. Most don’t, however, so don’t bet on it. continued Crowd-funding In the UK and the US crowd-sourced investment (as opposed to donations) has investment funded a number of renewable energy initiatives, such as Mosaic and Abundance Generation. These projects have been surprisingly successful at raising significant  Project amounts of community investment. Crowd-funded investment is currently development prohibitively difficult under investment laws in Australia.  Capital raising

PARTNER WITH OTHER ORGANISATIONS Partner with other The final possible funding mechanism is to partner with another organisation that organisations takes some or most of the financial risk, and raises some or most of the capital. One example of this is to partner with a conventional renewable energy developer,  Project particularly if they are already planning on doing a project in your area. The Central development New South Wales Renewable Energy co-operative (CENREC) is a good example  Capital raising of this, they are partnering with the wind developer Infigen to purchase one of the wind turbines in Infigen’s proposed 44 turbine wind farm at Flyers Creek. Partnerships are not stand-alone financing mechanisms; your group will still need to find some way of financing your part in the partnership. Also bear in mind that the more financially independent your group and wider community can be, the more decision making power you will have in the project.

45 8.3 Creating the business case for your most CORE projects is based on the unit price of project electricity sold and the amount of electricity the No matter which financing and fundraising project is likely to generate. Within this framework mechanisms your community chooses, you will of pricing structures there are two main options: need to develop a sound business case for your 1) Negotiating a Power Purchasing Agreement project, carry out financial due diligence and (PPA) with an electricity retail company. ‘stress test’ your business plan. Specifically, banks A PPA requires the retailer to buy your project’s will need a low risk guarantee that their loan will be electricity at a negotiated price, either a set paid off. They will want to see that your predicted price that will not fluctuate or the ‘spot market’ income streams are robust, that your group has price for electricity in the Australian Energy a strong management team and that someone Market which fluctuates dramatically. Typically, in your team has a track record in successful a retailer will be willing to offer 4-8c/kWh in a business development. fixed price PPA. Your project will also be eligible Additionally, most community members will for Renewable Energy Certificates, either Small- want an assurance that they will get some return scale Technology Certificates (STCs) for smaller on their investment, particularly if it is a large renewable energy projects1 or Large-scale investment. While grants do not require a return, Generation Certificates (LGCs) (see Section Policy grant makers tend to fund projects that look likely mechanisms that support renewable energy for to succeed and their measure of success will more details on the renewable energy certificates). almost definitely include that the project has a This will create a second income stream for your sustainable long-term finance model, as well as project. Negotiating a PPA for both the electricity delivering social or environmental benefit. generated and the Renewable Energy Certificates simplifies the operation but you may well get a At a business case level CORE projects are no greater income by negotiating these two income different from any other enterprise – you must streams with different buyers. consider your costs and income streams and how they stack-up relative to each other. As such, 2) Selling the electricity generated directly to several key decisions will need to be factored into energy users. your business case, including how you plan to sell There are several ways this could be done. One your electricity and renewable energy certificates, way is to place a renewable energy installation planning for community benefit and how to keep behind the electricity meter of a large energy operating costs down, and how you plan to user. This is the main model that community solar manage cash flow, among other things. We will projects are proposing to use in Australia at the cover these things briefly in the section below. moment (see 5 for more information). Selling your electricity and renewable energy If your community is off-grid, for example like the certificates Isle of Eigg in Scotland2, creating a small electricity The main income stream for almost all CORE grid and selling direct to the consumers may be the projects is the sale of electricity (and sometimes 1 No more than 100kW for solar, 6.4kW for hydro and 10kW for heat energy). This income is only available once wind the project is operational so the business case for 2 www.isleofeigg.net/eigg_electric.html

46 most attractive option available to you. However, ŽŽVirtual Net Metering (VNM). In the UK, ten to legally sell electricity directly to consumers in states in the US and Germany, small renewable Australia (aka not to an energy retailer), a National energy generators are allowed to sell their Retailer Authorisation (licence) must be obtained electricity directly to one or more nearby or an exemption issued by the Australian Energy electricity users. The benefit of this approach Regulator.3 Changes in the operation of the national is that because the transaction is in a local area electricity market and the growth of the CORE and does not use the full electricity distribution sector are opening up more innovative possibilities and transmission infrastructure, users are for the sale of electricity and renewable energy not charged the full network cost creating a certificates. In addition to the conventional PPA with win win for both consumers and embedded an existing energy retailer, these include: generators such as CORE projects. VNM while not technically illegal in Australia, has ŽŽOrganise the purchase and sale of renewable not yet been done. The Total Environment energy certificates from community renewable Centre and Institute for Sustainable Futures are energy projects as a form of Greenpower. two organisations investigating how it could For example ‘the new Community Climate be done here.6 The Coalition for Community Chest (C3)4 allows individuals to purchase Energy is actively investigating these options. GreenPower LGCs from specific projects, Keep in touch with the Community Power bypassing energy retailers. As it is traded Agency if you would like to find out more about through a DGR registered organisation (ATA), all innovative approaches to selling energy as they GreenPower LGC purchases are tax deductable develop. (a tax office ruling has been obtained to confirm this), providing a 30%+ tax offset for the Innovative approaches to electricity retailing purchase amount for most users.’5 have worked well overseas - see for example the ŽŽAggregating the sale of electricity from multiple Svergies Wind co-operative case study7. CORE projects. In November 2012 a new Establishing a community fund category of participant in the national electricity In addition to paying back loans and providing market called a “Small Generation Aggregator” a return to investors (if that is the model you was created. This allows electricity output from go with), many CORE projects that generate a number of small generators to be aggregated profit give money back to the local community. and sold in the national market. Commercial or Typically, the vehicle for this community money community based market aggregators could is an existing Community Organisation (eg. the make it easier and cheaper for small CORE community organisation ownership model) or a projects to sell into the national wholesale dedicated community fund. If you decide to set market and to get a better price for their energy. up a dedicated community fund, this will probably 3 See the AER’s website for more details - www.aer.gov.au/retail- need its own legal entity, as well as separate markets/retail-exemptions. community engagement processes to decide 4 C3 website: Community Climate Chest https://www.climatechest. org.au/ 6 Find out more at http://cfsites1.uts.edu.au/find/isf/publications/ 5 Ison N, Byrne M, Gilding J, Hicks J and Memery C (2014), langhametal2013virtualnetmetering.pdf Community Energy Advocacy Strategy, Coalition for Community Energy http://c4ce.net.au/ 7 www.embark.com.au/pages/releaseview.action?pageId=2294078

47 what the income could be used for (e.g. yearly re-payments, insurance, dividend distribution, grant funding rounds). Examples of things other community fund distribution, events, paying CORE community funds have given money to dividends, communicating with members and include energy efficiency programs, environmental developing other communications materials, etc. programs, funding a new community enterprise, as well as putting aside money for refurbishment providing a new social service (e.g. a school bus, and dismantling the infrastructure when the time fire brigade equipment). What you use the money comes. Operating and administration costs are for will also obviously depend on how much one of the key factors that are currently inhibiting income is coming in. For example, Hepburn Wind the development of community solar projects, as has a $30,000 year community grants program, such a number of organisations are looking into while a community hydro project in Wales splits ways that CORE projects can share these costs its estimated £20,000 annual profit between a thus increasing their viability. Contact the Coalition childcare project, a coffee bar and a community for Community Energy for updates on this. centre. Cash flow Whichever approach to financing, electricity sale and community income you choose, there is one more crucial financial consideration to take into account – cash flow. CORE projects present a cash flow dilemma because most of the costs are upfront and are due before the project is able to start generating income through the sale of electricity; particularly during the construction phase of a project when expensive items – for example the wind or water turbine – must be bought, as well as civil works paid for. This often comes to hundreds of thousands, if not millions, of dollars. Preparing a cash flow plan to ensure you have enough money in the bank at the time you need it will help you ensure the success of the project and can form the basis of your financing strategy. Operating costs The costs of operating your CORE facility once it is up and running also needs to be factored in to the business case. Operation costs need to include things such as staff time (for management, book keeping, community engagement, etc.), maintenance, accounting and auditing, loan

48 external factors 9

There are a number of external factors that are to a greater extent out of the control of your group that will none-the-less have significant bearing on what is and is not possible for your CORE project. These will affect specific decisions within the areas discussed above.

Key external factors to consider include: 9.1 The National Electricity Market ŽŽThe technical, commercial and regulatory Electricity generation, distribution and sale in structure of the electricity system. Australia is a highly regulated industry with many ŽŽState and Federal Government energy policy players and a complex set of arrangements which such as Renewable Energy Targets, Feed- govern its operation. The National Electricity in Tariffs, carbon-pricing and CORE support Market (NEM) is a wholesale market for the supply programs. The government regularly reviews and purchase of electricity that covers the area these programs and changes the terms under serviced by an interconnected set of networks which payments are made, as well as the which extends from Port Douglas in Queensland amounts paid. These changes can have serious to Port Lincoln in South Australia and Tasmania. If implications for project financing. your proposed project is to be connected to the ŽŽPlanning policy: one of the key tasks in grid in this area, you will need to understand NEM developing a CORE project is getting planning arrangements as they affect what you can and approval. Each state in Australia has its own cannot do and how you will be paid for electricity planning system, so planning requirements you generate. Different arrangements apply to will differ from place to place and also by the West Australian “South West Interconnected technology type and scale. System” (SWIS) or if you are not connected to the ŽŽLegal entity regulation (eg. Company law, grid at all. Incorporated Association law) Australia’s electricity system, like many around ŽŽThe existing organisations in your community – the world, was set up for a centralised model of what organisations already in your community electricity generation, with large fossil fuel powered could help or hinder the project? What’s the generators, with a one way flow of electricity. internal politics of your community? Attitudes The electricity system works at two main levels to renewables? What is the local council›s – physical (flow of energy) and commercial (flow approach to energy and sustainability? How will of money). At a physical level, energy traditionally this fit with what you are trying to do? flowed from generators through the transmission ŽŽThe CORE support organisations that operate network, to the distribution network and on to end in your area (a list is given in the Resources users such as you and I. section of this guide).

49 At a commercial level money flows from end Figure 7: Transport of Electricity 3 users of electricity to an energy retailer who in turn purchase electricity from generators on the wholesale electricity market (or through private power purchase agreements). Retailers also have to pay network companies for the use of the distribution and transmission networks as well as policy schemes and operating fees of the market. This all means that that our electricity system has two “markets” a wholesale market which is the cost of just the electricity generation and a retail market which is the cost of the whole system, as shown in Figure . Figure 8: Average NSW Electricity Bill4 In the last 15 years the wholesale cost of electricity in NSW has ranged from an annual average of 2.8c/ $2,500 $654 $2,231 kWh to 5.5c/kWh1. The 2012/13 regulated retail tariff for residential customers was between 28.5c/kWh $2,000 and 37.4c/kWh and for small commercial customers $94 $1,159 $76 ranged from 26c/kWh to 34c/kWh2. As such, $1,500 $167 $140 whether your project is behind a meter of a customer $1,100 and thus competes with retail electricity prices or just $1,000 $231 $505 exports electricity to the grid and thus competes with $114 $167 wholesale electricity prices, makes a huge amount of $500 $137 $38 difference to the economics of your project. $560 $420

$0 Average Energy Carbon Other Retail Network Average bill Price Green bill 2007/08 2012/13 (Increase from 2007/08 to 2012/13)

Energy Other Green Network

Carbon Retail

1 www.aemo.com.au/Electricity/Data/Price-and-Demand/Average- Price-Tables 3 Adapted from http://eex.gov.au/energy-management/energy- 2 IPART (2013) Review of regulated retail prices for electricity, procurement/energy-pricing/the-energy-supply-chain/ 2013 to 2016, p4. Note the tariffs quoted in this guide combine standing charges (daily – c/day or capacity c/kW) and energy 4 Source: IPART (2012) Review of regulated retail prices and tariffs (c/kWh). charges for electricity 2013 to 2016.

50 9.2 Policy mechanisms that support community solar projects could fall into either. See renewable energy the Office of the Renewable Energy Regulator for The main policy mechanism supporting renewable more information.7 energy in Australia at the time of writing is the The Australian Renewable Energy Agency (ARENA) Renewable Energy Target. Additionally, there are has been set up by the federal government with support programs such as the NSW Regional the aim of “improving the competitiveness of Clean Energy Program (see p.13) and funds renewable energy technologies and increasing the such as ARENA and the Clean Energy Finance supply of renewable energy in Australia”.8 ARENA Corporation that community renewable energy is predominantly a grant funding body. While projects could potentially tap into. The carbon some of their funding programs do not rule out price also increases the economic viability of funding for CORE, their programs do not target 5 CORE projects. CORE specifically. Nevertheless if your group is The Renewable Energy Target (RET) sets a certain considering a project using bioenergy or small amount of electricity that energy retailers must hydro, there may be potential for funding, so too purchase from renewable energy sources each if your community is off-grid or at the very edge of year, which increases annually until 2020. Current the electricity grid. arrangements are that the scheme continues The Clean Energy Finance Corporation (CEFC) until 2030 and is reviewed every two years by established as part of the Clean Energy Future the Climate Change Authority. To meet this Package, provides financing to nearly commercial target a market of renewable energy certificates renewable energy and energy efficiency projects. was created, where each certificate accounts As such, CORE projects (once they have planning for 1MWh of renewable energy generation. This approval and a business case) may be able to go provides renewable energy generators with a to the CEFC for assistance. The CEFC funding second income stream in addition to selling their would only be a possibility once planning approval electricity on the wholesale electricity market. The is granted and you are seeking loan finance for price of renewable energy certificates depends on capital costs. supply and demand – that is the price is set by the market, however the amount of generation (i.e. the size of the market) is set by policy. In 2011, the Renewable Energy Target was split into two: ŽŽThe Small-scale Renewable Energy Scheme6 and ŽŽThe Large-scale Renewable Energy Target. Bioenergy and most wind and small hydro CORE projects will fall into the latter category, while

5 Note at the time of writing the Renewable Energy Target is under review and both ARENA and the Clean Energy Finance Corporation’s future are uncertain. 7 http://ret.cleanenergyregulator.gov.au/ 6 <100kW for solar, <6.4kW for hydro and <10kW for wind 8 http://www.arena.gov.au/about/index.html

51 10 a final word

Community Renewable Energy Projects are innovative and empowering. We think that CORE projects are one of the most exciting ways to make a positive change in Australian communities. If and when you choose to embark on a journey to establish your community’s own renewable energy project we suggest you remember: “Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has!” - Margaret Mead

Westmill Solar Cooperative. Courtesy of www.westmillsolar.coop

Mount Alexander Communtiy Renewables. Courtesy of Taryn Lane.

52 resources 11

Appendix A: IAP2 Spectrum of Public Participation1

1 www.iap2.org.au/resources/iap2s-public-participation-spectrum

53 11.1 Resources: Useful Australian Organisations

Community Renewable Energy Support Organisations

Community Power Agency | http://www.cpagency.org.au/ The Community Power Agency was set up in 2011 to support the development of a vibrant community renewable energy sector in Australia. Drawing on a combined experience of visiting, researching and/ or working with over 45 CORE projects across the world, the Community Power Agency works with communities to build their capacity to deliver successful projects. They do this by providing training and workshops, public speaking, mentoring, networking and research. Community Power Agency also works with a range of organisations to help address the institutional barriers that are facing all CORE projects across Australia. They do this by running campaigns such as the Fund Community Energy Campaign (www.fundcommunityenergy.org ), undertaking research (The Australian Community Renewable Energy Sector: Challenges and Opportunities), developing resources, coordinating sector information sharing and collaboration, particularly through the founding of the Coalition for Community Energy, strategy development and more.

Embark | www.embark.com.au Embark Australia is a non-profit organisations that emerged from the Hepburn Wind experience (it is governed by an independent board). Embark offers support to interested communities including: ŽŽdeveloping a best practice toolkit to help rapidly up-skill communities ŽŽknowledge transfer and expert advice ŽŽbuilding a network of CORE related suppliers, contractors, investors and lenders ŽŽaggregating services to capture economies of scale ŽŽidentifying and trouble-shooting CORE market failures ŽŽsourcing feasibility and investment funding ŽŽattracting large-scale investment for projects ŽŽadvocating for policy changes to grow the sector ŽŽcoaching, facilitation, on-going support and public speaking. Embark has developed a wind and solar model and a suite of legal templates to reduce the financial and organisational barriers that communities face.

54 Starfish Enterprises | http://starfishenterprises.net/ Starfish Enterprises Network Limited is a community company limited by guarantee supporting different sustainable initiatives such as Farming the Sun, New England Wind, New England Sustainability Strategy, The Living Classroom etc.

Starfish Enterprises specialises in and provides: ŽŽUber Participation: participatory processes, such as for planning or decision-making, are key to best bringing together the wide range of interests, expertise, stakeholders and knowledge ŽŽCollaborative Governance: models of organising which best share and distribute leadership, roles and responsibilities between the many stakeholders, organisations and people who make up regions, communities and sectors ŽŽLeadership & Learning: in core sustainability capabilities such as participation, collaboration, partnership development and social change ŽŽCommunity Enterprise: creating livelihoods that meet and provide for essential community needs (such as energy, transport, education, food, accommodation, health and communication) ŽŽAuspice: initiating or enabling sustainability initiatives to become self-sustaining and independent ŽŽSocial Marketing Stories: to touch, move, inspire and enable people and organisations in being sustainable.

Energetic Communities | http://energeticcommunities.org.au/ Energetic Communities is an Incorporated Association that works closely with communities, especially Transition Kurilpa in Brisbane. As well as developing CORE, Energetic Communities is a Social Enterprise providing several services in sustainable energy and food, business energy efficiency, peak oil, climate change and sustainability research. They offer: ŽŽSupport and development ŽŽSustainability assessment and strategies ŽŽCarbon accounting and management ŽŽCarbon footprint assessment and recommendations ŽŽEnergy audits and energy efficiency

55 Alternative Technology Association (ATA) | http://www.ata.org.au/ The ATA is a not-for-profit organisation promoting sustainable technology and practice. They provide services to members who are actively walking the talk in their own homes by using good building design, conserving water and using renewable energy. ATA advocates in government and industry arenas for easy access to these technologies as well as continual improvement of the technology, information and products needed to support sustainability. In particular, ATA has specialist expertise in engaging with the National Electricity Market (NEM), and can support CORE groups to wade through the complexity of engaging with the NEM and mainstream energy market players. The ATA is a not-for-profit organisation promoting sustainable technology and practice. With branches and members around Australia and New Zealand, ATA provides practical information and expertise, based on their members’ hands-on experience and needs. ATA also offers advice on conserving energy, building with natural materials, reusing, reducing the use of and recycling natural resources. ATA also publishes RENew, a magazine showcasing the latest sustainability and clean technology developments.

Australian Community Energy (ACE) | http://www.ace-renewables.com ACE is a consultancy that facilitates the development of community and business driven investments into renewable energy. They offer a complete development package for renewable energy projects from project concept and initiation through to construction and ongoing operation management. Their services include: Project concept initiation; community consultation; renewable energy resource assessment; project design and layout; planning and regulatory assessment; grid connection assessment; co-operative establishment; environmental assessments; government and agency liaison; power purchase agreements; manage maintenance and repair, etc.

Sustainable Regional Australia | http://www.sustainableregionalaustralia.com.au/ Sustainable Regional Australia (SRA), established by the Central Victorian Greenhouse Alliance, supports, services and leads communities in their transition towards more energy resilient futures. Their services include: ŽŽHome energy assessments ŽŽBusiness energy assessments ŽŽLocation specific community energy efficiency leading to community renewable energy projects

56 Future Energy | http://www.futureenergy.com.au Future Energy Pty Ltd is a Victorian company established to develop, construct, and operate renewable energy projects throughout Australia. They facilitate investment opportunities in projects for communities, landholders, and individual and corporate investors. Future Energy were involved in the development phase of Hepburn Wind.

Moreland Energy Foundation | http://www.mefl.com.au/ Moreland Energy Foundation Limited (MEFL) is a not-for-profit organisation dedicated to sustainable energy. They undertake community engagement, deliver local sustainable energy programs, undertake sustainable energy related research and consulting projects and advocate on energy efficiency, renewable energy and related policy and planning issues.

Bushlight | http://www.bushlight.org.au/ Bushlight is part of the Centre for Appropriate Technology (CAT), a national Indigenous science and technology non-profit organisation. CAT provides technical advice and services to Indigenous communities throughout regional and remote Australia. They work closely with Indigenous people and their support agencies to deliver: ŽŽreliable and sustainable energy supplies by designing, installing and maintaining renewable energy systems ŽŽtraining and education in household energy efficiency to reduce power costs, and ŽŽsupport for local enterprise and activity development, using renewable energy.

Institute for Sustainable Futures (ISF) | http://www.isf.uts.edu.au/ ISF is the flagship research institute of the University of Technology, Sydney. They work across the full range of sustainability areas from water to waste, social sustainability to international development. In the energy space, ISF has undertaken a range of cutting edge research projects including the CSIRO- funded Intelligent Grid project that culminated in the Decentralised Energy Roadmap. ISF has a wide range of expertise in policy and regulatory barriers and opportunities for decentralised and renewable energy. In particular, ISF has undertaken sustainable and renewable energy master plans/strategies for a range of Councils across NSW. ISF will be leading the delivery of Australia’s inaugural Community Energy Congress 2014, a national conference bringing together the Australian CORE Sector for the first time.

Mattila Lawyers | http://www.mattilalawyers.com.au/ Mattila Lawyers is a leading Australian law firm with a legal team that includes corporate, regulatory and legislative experts. They have particular expertise in co-operative law at both state and national levels.

57 Government Organisations - NSW

Office of Environment and Heritage, Regional Clean Energy Program (formerly Renewable Energy Precincts Program) | http://www.environment.nsw.gov.au/climatechange/renewableenergy.htm The Regional Clean Energy Program is a NSW Government initiative which supports the community in their early and effective engagement with renewable energy projects across NSW. The Office of Environment and Heritage has employed six regionally-based renewable energy coordinators to help drive regional initiatives and lead stakeholder engagement to enhance knowledge, understanding and uptake of renewable energy. In 2013, the Program provided $411,000 to nine CORE projects in development across NSW.

Department of Fair Trading | http://www.fairtrading.nsw.gov.au/ NSW Fair Trading administers fair trading laws and looks after the rights of consumers. They advise businesses and traders on fair and ethical practices. The website provides information, templates and application forms that - amongst other things - enable registration of an association or cooperative in NSW.

Department of Planning and Infrastructure NSW | http://www.planning.nsw.gov.au/ The Department of Planning and Infrastructure is a NSW state government department that aims to supports sustainable growth in NSW. Their website provides information about policy, regulations and strategies regarding planning issues. It gives the opportunity to lodge submissions and contribute to state government decision-making processes. The Department also provides funding and grants for different purposes.

Government Organisations – National

ARENA | http://www.arena.gov.au/ The Australian Renewable Energy Agency (ARENA) is an independent Commonwealth authority, supporting innovations that improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia. Key programs include: ŽŽThe Emerging Renewables Program, which provides funding for capacity building, addressing knowledge gaps and removing roadblocks to renewables and ŽŽThe Regional Australia Renewables initiative.

58 Regional Development Australia | http://rda.gov.au/ Regional Development Australia (RDA) is a national network of 55 committees made up of local leaders who work with all levels of government, business and community groups to support the development of their regions. Local RDA chapters also give grants. This Australian Government initiative brings together all levels of government to support the development of regional Australia. It is funded by the Australian Government and by state, territory and local governments in some jurisdictions. It is administered by the Department of Regional Australia, Local Government, Arts and Sport.

Advocacy

Solar Citizens | http://solarcitizens.org.au/ Solar Citizens is a community initiated campaign working to build community and political support for renewable energy, particularly solar home owners. Using community organising tools made popular by the Obama campaign in the US, Solar Citizens has been integral to ensuring that renewable energy remains on the agenda, while also supporting local groups across Australia to develop valuable community organising and campaigning skills.

Total Environment Centre | http://www.tec.org.au/ The Total Environment Centre (TEC) is an independent, non-profit group. Since its establishment in 1972, TEC has run more than 100 campaigns. The organisation concentrates its resources on direct campaign activity, lobbying and research for the protection of the environment and sustainable systems and technologies. One of their major campaigns continues to be advocating for electricity market reform that is more environmentally sustainable.

Yes to Renewables | http://yes2renewables.org/ Yes 2 Renewables is the Friends of the Earth’s renewable energy campaign. The blog provides information about Renewable Energy policy in Victoria and announces public events to support Renewable Energy. It also gives a platform for engaged citizens to speak up for wind and other forms of renewable energy.

59 Clean Energy Council | http://www.cleanenergycouncil.org.au/ The Clean Energy Council is an incorporated not-for-profit association and is the peak representative body for Australia’s clean energy sector. It is an industry association made up of more than 600 member companies operating in the fields of renewable energy and energy efficiency. The Council is principally funded by membership fees and it provides services to its members, including briefings, knowledge transfer as well as advice and daily media updates. Its primary role is to develop and advocate effective policy to accelerate the development and deployment of all clean energy technologies. The CEC also promotes awareness of the industry, thought leadership and clean energy business opportunities through industry events, meetings, newsletters, directorates and the media.

Australian Solar Council | http://solar.org.au/ The Australian Solar Council is a not-for-profit organisation, which supports the development of solar applications in Australia. They promote solar energy, distribute information (e.g. trainings and events) and advocate for the adoption of this technology by government and business. They collaborate with industry, academics and the broader community for the adoption of solar energy. The website provides information about the latest branch news, information for future solar homeowners, event announcements such as best practice trainings on solar and complementary low-emissions technologies.

Australian Wind Alliance and the Victorian Wind Alliance | www.vicwind.org.au Wind farmers, professionals, business people and community members from across Victoria who wanted to bring positive wind stories and advocacy to the fore, founded the Australian Wind Alliance in 2012. The Alliance brings together communities, businesses and individuals who support more wind energy. Their mandate is to improve the environment, through education about the benefits of wind power by working on the ground in wind districts and online. They also partner with communities and wind developers in areas with operating, planned and potential wind farms to build understanding and support for wind power.

60 11.2 Useful Resources

Community Renewable Energy Guides

Embark Wiki | Australia | www.embark.com.au/ The Embark wiki provides a comprehensive overview of community renewable energy, including practical capacity-building tools. As a wiki, many leading community energy practitioners in Australia have developed articles and its content still growing. Articles showcase different examples of successful community energy projects from around the world. The community section gives very practical assistance and step-by-step guidance on how to start, run and build a group and deliver effective community engagement. Under the funding and finance heading, guidance is provided for funding early stages of projects, developing a financial model, and business case templates. Details on the Embark solar and wind models and legal frameworks can also be found. The case studies section draws on Australian and overseas examples. The website also provides background information about the history of community energy and the Australian energy market.

Guide to Developing a Community Renewable Energy Project in North America | US, Canada, Mexico www.cec.org/Storage/88/8461_Guide_to_a_Developing_a_RE_Project_en.pdf The guide gives detailed instructions and background information for communities to develop small- scale renewable energy projects. Although it mainly focuses on the co-operative business model, the information presented is equally applicable to other business models. The tool provides practical guidance on how to approach and initiate community projects and covers relevant technologies such as wind, solar PV, hydro and biomass. It includes planning charts for the different technologies and a step- by-step description of how to start a community project. The need for a business plan and its structure is discussed, as are financial management and the essentials of a detailed budget plan. Specifically targeted at the North American readership, the second last section sketches legal requirements and permitting processes at the different levels of government including technology-specific permits. The last section draws attention to an issue sometimes neglected in early stages of the community energy project development - the operation stage and the schedules of maintenance. The guidebook highlights the importance of planning and managing the last stage of a community project. Additional web resources and links for the North American audience are listed in the annex; especially useful (also for non-American readers) are two examples of model business plans for a Wind Park and a Biomass Cogeneration Plant.

61 A guide to manage community funds | UK - Scotland www.communityenergyscotland.org.uk/publications_and_guides This tool provides suggestions and guidance for communities receiving income from renewable energy schemes on how and where to spend it to benefit their local areas. While drawing from the latest knowledge on the advantages and disadvantages of different approaches, three models of fund management are discussed.

Community Renewable Energy Toolkit 2011 – updated version | UK - Scotland www.scotland.gov.uk/Resource/Doc/917/0115761.pdf This comprehensive toolkit has been produced by Community Energy Scotland for the Scottish Government and Energy Saving Trust to help community groups to develop renewable energy projects and pursue energy efficiency activities. This guide is more technologically oriented and provides practical information for community groups undertaking renewable electricity or heating projects. The first part provides general background information on energy, renewable energy and carbon basics as well as energy efficiency in buildings. To assist community groups in choosing the right system, different technologies are discussed along with key issues regarding installation and operation. Details are provided for the technologies such as solar water heating, solar PV, wind energy, biomass heating, heat pumps, exhaust air heat recovery, wave and tidal power. A full section is dedicated to renewable district heating networks. Guidance is also given for off grid solutions and their design requirements. The three last parts emphasis aspects of community ownership, community consultation and funding and financing of community projects. The annex of the toolkit contains amongst others a list of the current community projects in Scotland, sources for grant funding and 16 case studies of community projects.

Community Involvement in Renewable Energy Projects. A Guide for Community Groups 2000 | UK http://webarchive.nationalarchives.gov.uk/+/http://www.berr.gov.uk/files/file48402.pdf This guide was produced for the Department of Trade and Industry (DTI) and describes the processes involved in establishing a community renewable energy project. It starts by discussing the benefits of renewable energy and the scope for community involvement. The principal steps in developing a project involving the community are then described, before moving on to the likely procedures for starting a project. Sources of finance and the necessary legal structures are outlined, with taxation aspects (key issues for community investors) and the preparation of business plans being summarised in the appendices.

62 A rough guide to community energy | UK | www.roughguide.to/communityenergy/ This booklet was produced for Plan A, CSR and Sustainable Business, Marks & Spencer with the aim to make it easier for community group to establish projects whether generating renewable energy or saving energy. It starts by emphasising the benefits of community energy and explaining the energy mix and industry in the UK. The next chapter elaborates the first steps and hurdles for starting a group while listing some practical guidance. The guide goes into detail for energy efficiency measures as well as renewable energy generation.

How to plan and deliver a successful climate change project | UK www.energysavingtrust.org.uk/Publications2/Communities/How-to-plan-and-deliver-a-successful- community-climate-change-project This guide was developed by the Energy Saving Trust in England and provides a more generic approach for how to develop and implement a community project with a focus on either renewable energy or energy efficiency. It offers the reader guidance to understand how to reduce their community’s carbon footprint; explore what carbon-reducing actions are best for their community; set targets and understand the benefits these can have for their project and develop an action plan for reducing carbon emissions. The guide includes links back to the Energy Saving Trust website with more detailed information on types of technologies, tools to calculate the footprint of your community.

Guide to Community Energy | UK | www.gov.uk/community-energy#community-energy-toolkit The Department of Energy & Climate Change website offers a guide for local groups who are interested in setting up a community energy project. It starts with giving a short overview of what community energy covers and what emphasis such projects have on. It contains a lot of links and further reading suggestions.

Community Renewable Energy Case Studies

Project of the Community Power Agency | Australia | www.cpagency.org.au The Google map on Community Power Agency’s website provides links to community energy projects in operation and in development, particularly in Australia.

Scotland’s Community Energy Database | UK | www.communityenergyscotland.org.uk/projects.asp Online project database to share and network, where projects that have been supported by Community Energy Scotland can be uploaded, shared and searched.

63 CARES Case Studies | UK | www.communityenergyscotland.org.uk/projects/cares_case_studies List of different case studies for all different technologies in Scotland, which have been supported by the Scottish Government’s CARES fund.

PlanLoCal Case studies | UK www.planlocal.org.uk/planlocal-community-renewables/group/case-studies This website provides ten case studies from across England which focus on a range of different communities, different projects, and different technologies.

Energy4All | UK | www.energy4all.co.uk/projects.asp This website provides case studies from England, Scotland and Northern Ireland including an interactive map with project locations.

Community Energy Partnerships Program | Canada and around the world | www.communityenergyprogram.ca/Resources/ResourcesCommunityPower.aspx The website of the Community Energy Partnerships Program (CEPP), which is a grant program to support community power in Ontario, provides some case studies from Ontario and from around the world.

Ashden Awards | UK and around the world | www.ashden.org Ashden champions and promotes practical, local energy solutions that cut carbon, protect the environment, reduce poverty and improve people’s lives. Their website is a fantastic resource of renewable energy and energy efficiency projects from all over the world.

Case studies of community energy in Germany | Germany www.forumforthefuture.org/project/discover-community-energy/more/germany-community-energy-tour This website provides some German case studies from community energy projects in Schönau, Feldheim, Vauban, Sandfang, Freiburg and Freiamt.

West Oxford Community Renewables | UK www.youtube.com/watch?feature=player_embedded&v=GZoL2sYt19Q This video from West Oxford Community Renewables provides an introduction what the community has achieve by installed 550 solar PV panels on the roofs of a local school and benefit from the feed-in tariff.

Community-owned wind turbine Hockerto | UK | www.youtube.com/watch?v=qiRk7TqgO90 Video on how the people of a Nottinghamshire village bought and installed a 225 kW wind turbine, with feed-in tariff profits benefitting shareholders and paying for projects to benefit the local community.

Middelgrunden Wind Turbine Cooperative | Denmark | www.middelgrunden.dk/middelgrunden/?q=en One of the most cited case studies for wind power in Denmark. This example represents the success story of community wind in the country.

64 Wind

Wind Works | USA, international | www.wind-works.org/cms/ This website offers an online archive of articles and commentary on wind and solar energy, community power, renewable energy policy, and Advanced Renewable Tariffs by the author, advocate, and renewable energy industry analyst Paul Gipe. Resources on both large and small wind energy provide information on technical details, wind power development in other countries as well the history of wind power. The website also offers books of the author as well as book reviews about wind energy and community wind power.

Wind Farm Guide for Host Landholders | Australia www.nswfarmers.org.au/news/global-news/wind-farm-guide-for-host-landholders The Wind Farm Guide for Host Landholders was developed by NSW Farmers with help from the NSW Government. The guide is targeted at landholders who are considering hosting a wind turbine on their property, are in the process or already host a wind turbine. The document provides information to better understand the process for wind farm development from the initial stages right through to decommissioning. The first part of the guide comprises a checklist of questions to ask when dealing with wind farm developers, background information on wind energy in NSW and renewable energy policy in general. Aspects such as dealing with multiple developers, understanding the potential impacts on e.g. farming, land use, water use, impacts on amenity and visual are highlighted. The reader obtains insight into the different contract arrangements and what commercial considerations have to be taken into account. In the middle section the planning, construction and decommissioning stages of a project are described in detail. The description also includes information about Community Consultative Committees. Additional resources and contacts for those seeking further advice for projects in NSW, are listed in the last part of this guide.

Community Engagement Guidelines for the Australian Wind Industry | Australia www.cleanenergycouncil.org.au//cec/technologies/wind/comm-engage-guidelines The Clean Energy Council on behalf of the Australian wind industry has released its community engagement guidelines. The guidelines demonstrate the industry’s commitment to involving local communities in the development and management of wind farms. The guidelines were developed by independent consultants the Australian Centre for Corporate Social Responsibility and involved input from the wind industry as well as an external reference group made up of academics, practitioners from other industries, landholders and government representatives. The guide outlines best practice community engagement and what this means throughout the various stages of a wind farm. The guidelines are a ‘live’ document that will be continuously reviewed and updated to reflect best practice in community engagement.

65 Victorian Consumer Guide to Small Wind Turbine Generation | Australia www.sustainability.vic.gov.au/resources/documents/small_wind_generation1.pdf This resource provides guidance for purchasing a small wind turbine for home owners or businesses in Victoria. It gives assistance as to whether to purchase a wind turbine system and what type. ‘Small’ wind systems are typically those sized to suit the needs of a domestic dwelling or small business; generally less than 100 kW and most are in the range 1-10 kW.

NSW Small Wind Turbine Consumer Guide | Australia www.environment.nsw.gov.au/resources/climatechange/0449SWCG.pdf This Guide was commissioned by the NSW Office of Environment and Heritage (OEH) and published in June 2010. It is a revision of the Victorian Consumer Guide to Small Wind Turbine Generation prepared for Sustainability Victoria by Enhar, adapted for use in NSW. Whilst installer and equipment supplier information is now dated, the guide does provide a good overview of small wind in NSW, together with information about planning approvals and installation requirements. Six case studies across NSW provide examples of what can be done with small wind.

Community Wind Toolbox | US | www.windustry.org/community-wind/toolbox This Toolbox is designed to give developers of community wind projects practical knowledge of what to expect when developing commercial-scale community wind energy projects in the range of 1 to 100MW. These wind projects are designed for bulk power generation for sale to a utility company or large electricity user and can supply enough energy to serve several hundred to thousands of homes. The Toolbox does not apply to small-scale wind systems.

Small Wind Electric Systems – An Oregon Consumer’s Guide | US www.oregon.gov/energy/RENEW/Wind/docs/smallWindGuide.pdf This comprehensive consumer’s guide for small-scale wind turbines was produced for the US Department of Energy provides good reasons for installing wind turbines. It explains the technical features of a wind turbine, sizes and functionality. Furthermore the guide gives practical advice what wind system cost, where to find installers and how to connect the system to the grid.

66 Community Wind: An Oregon Guidebook | US http://energytrust.org/library/forms/CW_PG_CommWindGuidebook.pdf The Energy Trust of Oregon prepared this Guidebook to facilitate successful, cost- effective community wind development that provides measurable benefits for Oregon’s environment and local economies. The purpose of this Guidebook is to introduce the basic concepts behind community wind development in plain, user-friendly terms. It provides the reader with the conceptual framework for understanding the process of community wind project development. This Guidebook is primarily tailored for individuals or communities pursuing development of a community- based wind project around 600 kW to 10 MW in size. The first section is intended to convey the importance of project planning and provide useful tools to assist in managing a community-scale wind project. The next section discusses resource assessment and siting as very important parts of the development process. Further sections explain issues related to site control and securing the exclusive rights to develop a wind project by introducing different ways of ownership or land-lease agreement. After that the reader’s attention is directed to obtaining land use and building permits from different local and state authorities as well as challenges related to grid connection. In the second last section different financial and development models are introduced that best fit to community wind projects. The last part gives a range of further resources for Oregon and the mid-west US on wind energy development.

Solar

Community owned Solar PV | Australia | http://ramblingsdc.net/Australia/ComOwnedSolar.html This website was produced by the independent researcher Dave Clarke. The page aims to give information on how a community investment scheme could be set up to place solar PV power on buildings to the benefit of many and the disadvantage of none.

Initiating Your Co-operative Solar PV Community Power Project 2011 | US www.ontario-sea.org/Storage/62/5437_OSEA-SolarPV-Toolkit.pdf This toolkit is designed to get a community solar project started. It focuses on Ontario’s electricity system, renewable energy technologies, and co-operatives. However it provides also some general information on establishing a co-operative solar PV renewable energy project in a community.

67 A Guide to Community Solar: Utility, Private and Non-Profit Project Development 2010 | US www.nrel.gov/docs/fy11oti/49930.pdf The information in this guide, published by the US Department of Energy, Efficiency & Renewable Energy, is organised around three sponsorship models: utility-sponsored projects, projects sponsored by special purpose entities (businesses formed for the purpose of producing community solar power), and non-profit sponsored projects. The guide addresses issues common to all project models, as well as issues unique to each model. The guide begins with examples of the three project sponsorship models, discussing the legal and financial implications of each model. This is followed by a discussion of some state policies that encourage community solar and ways for multiple individuals to share in the benefits of a single solar installation. The guide then reviews some of the tax and financing issues that impact community solar projects. While the guide cannot offer legal or tax advice, the authors hope to provide an outline of the legal hurdles and pitfalls that every project organiser should consider. The “Getting Started” section is very useful as it provides readers with practical tools and tips for planning their own project.

The Northwest Community Solar Guide | US www.nwseed.org/wp-content/uploads/2013/05/NW-Community-Solar-Guide.pdf This guide is designed to be a resource for those hoping to construct Community Solar projects: community organisers, solar energy advocates, government officials, or utility managers. By explaining the universe of available incentives and by detailing the past efforts of other solar advocates, this guide hopes to light the path for future organizers as they seek to comprehend the incentive landscape, to devise financial models, and to garner financial and logistical support for their projects.

Bioenergy

New South Wales North Coast Bioenergy Scoping Study | Australia www.isf.uts.edu.au/publications/Isonetal2013northcoastbioenergy.pdf This study was initiated and developed by Sustain Northern Rivers (SNR) Energy Working Group in 2013. It quantifies the potential contribution of bioenergy to sustainable energy on the North Coast of NSW. The study provides a very good overview of current and emerging bioenergy activities and technologies such as direct combustion, pyrolysis and anaerobic digestion. It outlines three different bioenergy development models which are suitable in the North Coast region. The main part of the study deals with North Coast’s bioenergy resource potential, opportunities and challenges for sectors e.g. sugar cane, camphor laurel, macadamia, plantation forestry residues, etc. The second last part is dedicated to highlighting key bioenergy opportunities for the North Coast. A bibliography of key bioenergy resources was produced as an accompanying document.

68 NSW Bioenergy Handbook | Australia www.energy.nsw.gov.au/__data/assets/pdf_file/0003/452919/NSW-Bioenergy-HB.pdf This handbook was produced for the Department of Energy, Utilities and Sustainability in New South Wales in 2004. It provides detailed information on what different resources are available for bioenergy, what technological, logistical and environmental considerations need to be considered and what approach can be taken to develop a bioenergy project. The handbook comprises 6 sections, where the first gives a broad introduction to bioenergy, including its potential benefits and challenges, and an overview of sustainability issues for bioenergy projects. The next section provides a reference on bioenergy feedstocks for electricity and heat generation. In section 3 the reader is introduced to bioenergy processes, where a closer look is taken at the different processes used for turning biofuels into electricity, and their use in heating or cooling. This is followed by information about bioenergy for transport, which covers all the issues surrounding the production and use of vehicle fuels from bioenergy feedstocks. The second last section is dedicated to developing bioenergy projects including how to start a bioenergy project and planning and environmental protection licensing. Section 6 provides a list of further resources and contacts.

Usewoodfuel Scotland | UK | www.usewoodfuel.co.uk Usewoodfuel Scotland was created by Forestry Commission Scotland as part of a package of work delivered under the Regional Biomass Advice Network (RBAN) project which ran from 2008 to 2011. The overall objective of the programme was to encourage the installation of biomass boilers and to develop the wood fuel supply chain. The website offers technical as well as financial information for biomass heating for different target groups such as business, public sector, domestic as well as community organisations.

Bioenergy Training | UK | http://fyi.uwex.edu/biotrainingcenter/community-matrix-tools/ The Bioenergy & Renewable Energy Community Assessment Toolkit provides information and tools to engage community leaders and residents in discussions about alternative energy generation options and energy planning for the community. The authors present discussion matrices that focus community decision making on environmental, economic, and social aspects of renewable energy development. The matrices are qualitative in nature, and provide a starting point for discussion by presenting possible outcomes (positive, negative, neutral) of development of alternative energy sources. Matrices are presented for the following renewable energy options: (1) Annual/perennial biomass, (2) Woody biomass, (3) Corn Grain Ethanol, (4) Anaerobic Digestion, (5) Wind Energy.

69 Small Hydro

North West Hydro Resource Model | UK | www.engineering.lancs.ac.uk/lureg/nwhrm/tool/ This website provides a resource evaluation tool that assists with identifying hydro power generation options. It is structured into five main parts and gives guidance in to the following aspects: economic assessment, physical characteristics, engineering options, environmental implications and public acceptability and engagement. Although the project to develop this tool was aimed at potential sites in the North West of England, data and interpretations allow for a general application at a region or sub-region scale for more strategic planning.

Financing

PlanLoCal | UK | www.youtube.com/watch?feature=player_embedded&v=cTP4FVgkzSY This link guides to a video from the PlanLoCal website which gives an overview how to raise the cash for a renewable energy project by inviting people to become shareholders.

SunFunder | UK | www.sunfunder.com/ Sun Funder is a crowdfunding website which offers investment opportunities for renewable energy projects in Africa, Asia, Latin America and the Caribbean. The model is based on three main target groups who benefit from each other: solar energy businesses who offer affordable solar energy solutions; underserved communities who lack access to financing and investors who like to fund solar projects and contribute to community development. The investors will earn back their investment and receive ‘Impact Points’ (interest) which can be reinvested.

Solar School | UK | www.solarschools.org.uk/ Solar Schools is a crowdfunding platform run by 10:10, a climate change project. Donations will be spent on solar PV installations on school rooftops, which help reduce a school’s carbon footprint, save money on energy bills, generate revenue and educate children about renewable energy and environmental issues.

Abundance Generation | UK | www.abundancegeneration.com/ Democratic finance is how the initiators describe their crowdfunding model ‘Abundance Generation’, which allows for investments of as little as five pounds in renewable energy projects that power communities, and in return for investing you can get up to 8% profit. Abundance Generation is a UK company that has, in six months, attracted almost £1.5million in renewable energy investments.

70 Community Wind Financing – a handbook by the Environmental Law & Policy Center | US http://elpc.org/wp-content/uploads/2009/11/ELPC-Community-Wind-Book-09.pdf This updated Handbook provides the latest information on financing community wind projects, including ownership structures, roles of financial intermediaries, and sources of federal and state financial support. Although building these projects has become easier over time as landowners have benefited from the experiences of the community wind pioneers, understanding and accessing financing opportunities remains perhaps the most important requirement for a successful project. Please note that this Handbook is not an overall guide to community wind development, but instead focuses primarily on ownership and financing issues. Appendix B provides more comprehensive sources of overall information on developing community wind power projects.

Greenunite | US | www.greenunite.com/ Greenunite is also a crowdfunding platform with an educational focus. It intends to support individuals to launch important products, technology and content dedicated to creating a more sustainable world. The website has a broader approach and features more than renewable energy projects. However the website currently only supports U.S.- based projects.

LeihDeinerUmweltGeld | Germany | www.leihdeinerumweltgeld.de/ ‘LeihDeinerUmweltGeld’ – ‘lend your environment money’ is a German crowdfunding website which offers solar PV, bioenergy and other renewable energy projects across Europe. Investors can earn up to 8% return on investment.

Community Engagement/ Governance

PlanLoCal | UK | www.planlocal.org.uk/ PlanLoCal is a programme developed by Centre for Sustainable Energy. It aims to support communities and groups who wish to set up community-scale renewable energy projects. It provides different guides e.g. resources to plan, promote or facilitate events. It also has a range of 47 short films which explain entertainingly how to manage a project, technologies, case studies and many more.

Ontario Coop Association | Canada | www.ontario.coop/cms/documents/1/Co-op_Biz_Comparisons_and_legal_combined_April2012.pdf This document provides a comprehensive overview of the different legal models of co-operatives, business corporations and not-for-profit corporations. In table format it compares the three models regarding e.g. principles, voting, shares, securities regulations, legal set up, income tax etc.

71 Community Power Roadmap to Success Video | Canada | www.youtube.com/v/wWgepkQrTdM This video nicely illustrates and explains the concept of community renewable energy, the model of cooperatives and how it works in Ontario.

International Association for Public Participation (IAP2) | Australia | www.iap2.org.au IAP2 has developed resources to understand best-practice community engagement and the principles of public participation. Their Public Participation Spectrum is a particularly useful tool. They also run courses.

The National Electricity Market

An Introduction to Australia’s National Electricity Market | Australia | http://www.aemo.com.au/corporate/0000-0262.pdf Overview of the National Electricity Market, including key regulatory bodies, the different actors, their roles and the institutional arrangements that make up the energy system in most of Australia.

72 www.cpagency.org.au

Jarra Hicks, Nicky Ison, Jack Gilding and Franziska Mey – April 2014

Reference Guide: Hicks, J., Ison, N., Gilding, J. and Mey, F. (2014) “Community-owned renewable energy: a how to guide”. Community Power Agency, Sydney.

Cover photo: Westmill Solar Cooperative, UK. Courtesy of www.westmill.coop. Design by greengraphics.com.au